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Standard & Poor's Rating Services will begin accepting several lien protection policies instead of title insurance for U.S. residential mortgage loans included in rated mortgage-backed securities transactions, the rating agency said.
The following title insurance alternatives have been reviewed by S&P: First American Title Insurance Co., Group 9-Second Mortgage Protection Policy, United Specialty Services and Winter Group.
Alternative title insurance has been widely used in the refinance and second-lien market for the past 18 months for loans that issuers hold in portfolios, the rating agency said. The new criteria allowing the products to be used for securitized loans is an expansion of S&P's previously established criteria.
"The lien protection policies cover losses arising from a borrower's default that resulted due to ...
Source: HighBeam Research, S&P Accepts Title Options.(Brief Article)