Fitch: U.S. RMBS Criteria Reflects Operational Risk Developments
OREANDA-NEWS. Fitch Ratings has released an update to its U.S. RMBS Master Criteria, providing improved clarity in the operational risk review sections, and containing greater detail on the transactional third-party due diligence review process. None of the changes are expected to have any rating implications for outstanding RMBS.
Highlights of the criteria update include:
--An expansion of the data adequacy section, providing guidance on Fitch's loan-level review and data evaluation approach.
--An outline of Fitch's expectations for due diligence sampling is provided, including a breakdown of sampling expectations by pool types.
--Additional clarity on due diligence for RPL pools.
--Expanded property valuation sections for due diligence; one for newly originated loans and one for seasoned, re-performing and nonperforming loans.
--Explanation of Fitch's approach to due diligence for single and multi-seller GSE transactions, including periodic due diligence reviews for single-seller GSE-related transactions, in concert with its regular operational reviews.
--Changes to the originator/aggregator key information request list, which will help facilitate more focused and comprehensive reviews.
--Emphasis on performance for originators, aggregators, servicers, and TPR firms as part of the operational assessment process.
Fitch will consider further updates to its criteria as the mortgage industry and the RMBS market continue to evolve.
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