Fitch: SFIG's Proposed U.S. RMBS 3.0 Reps Seen as Positive

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: U.S. RMBS Master Rating Criteria

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=882350

The proposed representations and warranties (R&Ws) included in the Structured Finance Industry Group's (SFIG) RMBS 3.0 initiative would be an improvement to current practices if accepted by the U.S. RMBS market, according to Fitch Ratings.

The proposal includes up to four categories for each rep with each category containing slight variations to reflect feedback from market participants or to address different loan characteristics. After completing a comparison of the language in each proposed variation to the reps listed in Fitch's current criteria, Fitch views all proposed categories for every rep as consistent with its criteria or credit positive. A notable proposed improvement is fewer 'knowledge' qualifiers, which Fitch believes will result in a stronger R&W framework. Fitch recognizes that the presence of a knowledge "clawback" is a potential mitigant for a knowledge qualifier.

Fitch does not plan to revise its existing criteria as currently described in its 'U.S. RMBS Master Rating Criteria' until the SFIG rep proposal becomes more widely adopted in US RMBS transactions. However, if included in a transaction, the currently proposed reps would be deemed as acceptable to Fitch.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160627005778/en/

Fitch Ratings
Rachel Noonan
Director
+1-212-908-0224
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Matthew Shaw
Associate Director
+1-212-908-0218
or
Suzanne Mistretta
Senior Director
+1-212-908-0639
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

You May Also Be Interested In

• RatedByPatients Launches Price Comparison Site for U.S. Telehealth, Medications and Pharmacies
• EMA Evaluates 39 Microsegmentation Solutions to Identify Top Performers for Enterprise Security Teams
• Nexus IT Completes Acquisition of Loyal IT, Expanding National Platform into the Texas Market