Moody’s Ratings analysts expect the performance of collateral in residential mortgage-backed securities (RMBS) to remain largely solid in 2026, although some deterioration is anticipated.

“Although mortgage losses will stay low with home prices largely steady on a national basis, delinquencies will rise further as economic growth slows and new loans remain weaker, with higher leverage,” the analysts wrote in a report released on Tuesday.

Moody’s data show that higher-leverage loans — jumbo and conventional mortgages with debt-to-income ratios of 43.1% or higher — now account for nearly 40% of new originations, up from about 20% in 2021.

RMBS investors details ⇒

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