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Home » Rating Agency Updates Loss Curve for High LTV Mortgages After Finding Problems Crop Up Sooner
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Rating Agency Updates Loss Curve for High LTV Mortgages After Finding Problems Crop Up Sooner

October 10, 2003
Standard & Poor’s this week updated its loss and default curve assumptions for high combined loan-to-value transactions to address the “unique” conditions of the sector. Since borrowers in the HCLTV market generally take out a second lien that pushes the combined LTV over 100 percent, losses occur quickly after default, the rating agency said. S&P found that the majority of
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