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Home » Store » News » Cramdown Legislation Could Lead to Higher Losses in MBS Deals, Rating Agencies Warn

Cramdown Legislation Could Lead to Higher Losses in MBS Deals, Rating Agencies Warn

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Despite its potential to reduce foreclosures and restore stability to the housing market, proposed mortgage cramdown legislation could also increase bankruptcy losses in residential MBS transactions but is not likely to trigger immediate ratings downgrades, according to credit rating agencies. In separate analyses, Standard & Poor’s, Fitch Ratings and Moody’s Investors Service...
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