S&P Finds Higher Default Risk in Loans with Second Liens, Boosts Credit Enhancements
April 13, 2006
Standard & Poor’s will require higher credit support for mortgage pools with simultaneous second liens, also known as silent seconds or piggyback loans. The rating agency announced the requirement for additional credit enhancements after revising its criteria for residential mortgages with piggyback loans. The latest enhancements will provide an additional cushion against increased default risk on mortgages with piggyback seconds in various FICO buckets. …