Items Tagged with 'Credit rating agency'


DOJ planning to sue Moody's over crisis-era mortgage bond ratings

Ratings agency discloses looming lawsuit from government
In the fallout from the financial crisis, many argued that the credit ratings agencies’ competition for business led to ratings shopping among bond issuers and relaxed ratings standards for the ratings agencies themselves. Last year, Standard & Poor's reached a $1.375 billion settlement over just such claims. And now the Department of Justice is taking aim at Moody's Investors Service.
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KBRA unveils new mortgage default and loss model

Reduces default expectations on purchase loans
Citing ongoing analysis of mortgage performance and evolving origination trends, Kroll Bond Rating Agency released an update to its residential mortgage default and loss model, including revising the timeline and expenses associated with liquidated loans and adjusting the penalty for high debt-to-income ratio loans.
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Moody’s proposes changes to RMBS rating system

Would incorporate global ratings model into U.S. methodology
Moody’s said that the new quantitative model will be the starting point for its analysis of the loan pool and that the new model was developed after an “extensive” analysis of the performance of 800,000 fixed-rate and 600,000 adjustable-rate mortgages issued since 1998.
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