Review Results on Issuers, Reps and Warranties, Due Diligence Become Key Factors in MBS Ratings
December 12, 2008
Responding to widespread criticism of their role in the subprime mortgage crisis, rating agencies are boosting their credibility and rating capabilities by tightening review criteria for loan originators and issuers of non-agency MBS, requiring third-party due diligence results in ratings analysis, and stronger representations and warranties. The announcements by Standard & Poor’s and Fitch...