(The following statement was released by the rating agency)Link to Fitch Ratings' Report: Global Criteria for Lenders’ Mortgage Insurance in RMBShttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884107LONDON/NEW YORK/SYDNEY, July 28 (Fitch)
Fitch Ratings' updated global criteria for lenders' mortgage insurance (LMI) in residential mortgage-backed security (RMBS) transactions contains minor changes to the rating framework but will not affect the ratings of existing transactions. The revised criteria continues to give credit to LMI within RMBS transactions on the basis of the LMI provider's ability to pay claims. This ability is measured by the provider's Insurer Financial Strength rating and a Quality Adjustment to addresses the potential risk arising from the difference between contractual coverage levels against actual coverage.
Actual coverage may be affected by policy exclusions, denied and reduced claims and rescissions. Fitch will continue to give credit to LMI through an adjustment to loss severity on a loan-by-loan basis. The global LMI criteria, which is also used to rate covered bond programmes where residential mortgages are present as collateral, will not affect the ratings of existing programmes.The updated criteria replaces the existing criteria of the same name, Global Criteria for Lenders' Mortgage Insurance in RMBS, dated 23 June 2015.
The Global Criteria for Lenders' Mortgage Insurance in RMBS is available on www.fitchratings.com or by clicking the link above.
Contacts: David Carroll Director+61 2 8256 0333Fitch Australia Pty Ltd Level 15, 77 King St, Sydney, NSW 2000 Natasha Vojvodic Senior Director, +61 2 8256 0350 Gregg Kohansky Managing Director +44-20-3530 1376Grant Bailey Managing Director+1-212-908-0544Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com; Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com; Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com.Additional information is available at www.fitchratings.com
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