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Rating Agency Surveillance of Existing RMBS and CMBS Mortgage Securities: Legitimate “Surveillance,” or Changing the Rules of the Game?

Posted in Tough Times for Lenders, Workout Issues

National rating agencies, and Standard & Poor’s (S&P) in particular, are developing new analytics to be applied to CMBS and RMBS pools originated in the years 2005, 2006 and 2007.  As a preliminary matter, it looks like the new criteria will, when applied to the Triple-A tranches, result in downgrades of a substantial percentage of Triple-A… Continue Reading