NEW! CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Wednesday, August 01, 2007

Moody's: Alt-A Rating Changes Effective Aug 1st

by Calculated Risk on 8/01/2007 01:05:00 AM

The earlier article on Moody's and Alt-A didn't mention the effective date. From Reuters: Moody's refines ratings methodology for Alt-A loans

Moody's Investors Service said on Tuesday it has refined its method for rating residential mortgage securitizations backed by Alt-A loans in response to rising delinquencies in pools of loans securitized in 2006.

The changes, which will go into effect on Aug. 1, address the poor performance of subprime-like loans, low and no equity loans, and low and no documentation loans which are present in certain Alt-A transactions, it said.