Fitch Toughens Seasoning Benefit of Its ResiLogic Model for Mortgages Originated After Mid-2005
August 21, 2009
The deteriorating performance of more recently originated mortgage loans has prompted Fitch Ratings to restrict the seasoning benefit given by its ResiLogic model for residential MBS, cutting off the frequency-of-foreclosure (FOF) benefit for loans made after June 2005. “The ResiLogic model previously reduced default expectations for mortgage loans that were more than 24 months...