Mortgage Bankers Say S&P’s Proposed Ratings Change Will Kill Any Chance for Revival of Non-Agency MBS
June 26, 2009
Standard & Poor’s proposed changes in its ratings methodology for non-agency MBS will impose such severe credit enhancement costs that issuers won’t be able to bring deals to market, according to the Mortgage Bankers Association. S&P last month proposed a significant change in its approach to rating jumbo, Alt A and subprime MBS that would result in sharply higher credit enhancement levels than were...