Moody’s Raises Concerns About Reduced Due Diligence in Prime MBS from Some Issuers
July 27, 2018
Three issuers of prime non-agency MBS have bucked industry standards and closed deals where some of the loans weren’t subject to pre-securitization reviews by third-party due diligence firms. The trend could cause problems for MBS investors, Moody’s Investors Service warned this week.