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Fitch Revising Its Mortgage Loss Model.

Mortgage Servicing News

| October 01, 2007 | COPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

NEW YORK -- Fitch Ratings has made criteria revisions to ResiLogic, its mortgage default and loss model for U.S. residential mortgage-backed securities.

The updated criteria incorporate new assumptions for falling home prices, the poor performance of loans with certain characteristics and changes in mortgage originations, the rating agency said.

The revisions place greater emphasis on regional economic risk, increase default expectations for short-term and hybrid adjustable-rate mortgages, and introduce a new risk category (low) for borrower income and asset ...

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