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Fitch Details New Criteria for Newly-Issued US RMBS 

Aug 06, 2007By

Fitch today released some high-level details of its updated ratings criteria for newly-issued RMBS deals, incorporating new assumptions for falling home prices, poor performance of loans with certain characteristics and substantial changes in mortgage originations. Some highlights: Use of regional economic modeling Increased default expectations for hybrid ARMs, option ARMs Introduction of “low doc” loan categorization (past categories included full, reduced, none)

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