Fitch Updates U.S. RMBS Master Rating Criteria

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has published an updated 'U.S. RMBS Master Rating Criteria' report. This report outlines Fitch's analytical framework for assessing the risks inherent in U.S. residential mortgage-backed securities (RMBS) transactions backed by newly originated and seasoned residential mortgages.

Fitch's rating approach considers the credit risks of the underlying collateral; the soundness of the credit enhancement (CE) and legal structures; and the quality of the financial and operational condition of the parties to the transaction. The report replaces Fitch's June 12, 2015 criteria report.

While no material changes have been made to the overarching process as outlined in the report, some clarifications were made with respect to Fitch's analysis of some Government Sponsored Enterprise (GSE) credit risk-sharing transactions (CRT) where cash flow analysis does not affect the rating decision.

Further clarifications were also made to the property valuation due diligence process for loans seasoned 13-24 months, whereby Fitch will no longer expect a broker price opinion (BPO) if a desk review is conducted by the third party review (TPR) firm. In addition, Fitch expects a field review to be obtained where the desk review indicates a 10% negative variance from the original appraisal. Previously Fitch considered either a BPO or field review to be acceptable when large variances are present.

'U.S. RMBS Master Rating Criteria' is available at 'www.fitchratings.com' or by clicking on the above link.

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

U.S. RMBS Master Rating Criteria

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870427

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View source version on businesswire.com: http://www.businesswire.com/news/home/20151001006426/en/

Fitch Ratings
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Source: Fitch Ratings

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