Risk Retention Is No Panacea, Fitch Says, But S&P Says New MBS Regime Could Improve Underwriting
August 12, 2011
Standard & Poors and Fitch Ratings have raised concerns about the proposed risk-retention rule that has sparked an outcry among MBS issuers, but the rating services appear to be taking a more measured view in fact, S&P says it may be good for the markets long-term health. In a recent report, S&P agreed with the industry consensus that the proposed rule wont help the housing market and non-agency MBS sector right now. But the new standard for securitization, which sets a high bar for qualified residential mortgages that would be exempt from a ...