Fitch: No Rating Changes from Update to Global LMI Criteria in RMBS
The revised criteria continues to give credit to LMI within RMBS transactions on the basis of the LMI provider's ability to pay claims. This ability is measured by the provider's Insurer Financial Strength rating and a Quality Adjustment to addresses the potential risk arising from the difference between contractual coverage levels against actual coverage. Actual coverage may be affected by policy exclusions, denied and reduced claims and rescissions.
Fitch will continue to give credit to LMI through an adjustment to loss severity on a loan-by-loan basis.
The global LMI criteria, which is also used to rate covered bond programmes where residential mortgages are present as collateral, will not affect the ratings of existing programmes.
The updated criteria replaces the existing criteria of the same name, Global Criteria for Lenders' Mortgage Insurance in RMBS, dated 23 June 2015.
Комментарии