No Ratings Cut from RFC Increase of Loan Modification Activity in MBS Pools
November 7, 2008
Raising the prescribed limit on allowable modifications in securitized transactions sponsored by Residential Funding Co. last month will not result in a ratings downgrade, according to Moody’s Investors Service. Moody’s reassured RFC that it will not lower ratings on 14 MBS trusts solely on the basis of an increase on the amount of loans that can be modified under the pooling and...