Mortgage-bond provisions prompt rating agency concerns

03/12/2013 | Wall Street Journal, The

As the residential mortgage-backed securities market begins to recover, banks looking to issue more mortgage-backed bonds want to include more restrictions in the documentation that assures the security of the underlying loans. Credit rating agencies remain concerned with the practice, with Moody's Investors Service and Fitch Ratings citing concerns that the restrictions might shield lenders and issuers from their legal liabilities. Moody's also said that the issue could keep some of the securities from getting top ratings.

View Full Article in:

Wall Street Journal, The

Published in Briefs: