Filtering, Compliance Keys to Cutting Subprime Enhancement Levels, Fitch Says
November 21, 2003
Filtering technology, outside compliance help, and rigorous quality controls can help subprime mortgage securitizers reduce credit enhancement levels for pools that include loans from states where predatory lending laws have been enacted, analysts at Fitch Ratings claim. During a conference call this week, rating agency analysts said that even prime mortgage AAA enhancement levels have shot up in some states that have enacted anti-abuse laws.