Moody’s Unveils Cash Flow Modeling Assumptions for Subprime MBS Deals
March 19, 2004
Mortgage seller/servicers that stick to their guns when it comes to collecting prepayment penalties can significantly reduce subordination levels on subprime securitization deals. That was one the revelations that emerged from a report, published last week by Moody’s Investors Service, that laid out for the first time the details of the company’s model for determining tranche sizes for most subprime mortgage-backed MBS deals. Moody’s said