Items Tagged with 'Credit rating agency'

ARTICLES

  • SEC hits Moody’s with $15 million fine over mortgage bond ratings

    Credit ratings agency will also pay $1.25 million for “ratings symbol deficiencies”
    In the wake of the financial crisis, the country’s largest credit ratings agencies all touted new ratings methodologies that were, in theory, designed to guard against the sorts of malfeasance that surrounded mortgage bond ratings in the run-up to the crisis. But it looks like the new mortgage bond rating system at one of the nation’s largest credit ratings agencies was far from perfect.
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  • AAA ratings return for non-prime mortgage bonds. Crisis redux? Maybe not

    Feature of new RMBS deal builds in greater protections for bond buyers
    The world of post-crisis mortgage bond trading is about to change, as a new mortgage bond is set to hit the market that features loans that would be considered non-prime, and also carries AAA ratings – a post-crisis first. Both Fitch Ratings and DBRS handed the deal AAA ratings on the largest tranche of the deal, but the deal is not a return to the pre-crisis world of credit ratings, at least not yet.
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  • 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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