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Calyx integrates hazard insurance category into Point

National Mortgage Professional
Jun 10, 2008

New York Attorney General Cuomo announces agreements with credit rating agenciesMortgagePress.comAndrew Cuomo, Standard and Poors, Moodys Investors Service, Fitch, RMBS New York Attorney General Andrew Cuomo has announced that he reached agreements with the three principal credit rating agencies, Standard and Poor's, Moody's Investors Service, Inc. and Fitch Inc., to reduce their incentive to give favorable ratings on the residential mortgage-backed securities (RMBS). The agreements will establish a fee-for-service structure, where the rating agencies will be compensated regardless of whether the investment bank ultimately selects them to rate a RMBS. In addition, the three rating agencies have agreed to implement the following changes: • Credit rating agencies will disclose information about all securitizations submitted for their initial review, which is intended to enable investors to determine whether issuers sought, but subsequently decided not to use, ratings from a credit rating agency; • Credit rating agencies will review and evaluate individual mortgage lenders and disclose their evaluations on their Web sites; • Credit rating agencies will receive loan level results of due diligence and review those results prior to issuing ratings; • Credit rating agencies will perform an annual review of their RMBS businesses to identify practices that could compromise their independent ratings; and • Credit rating agencies will require a series of representations and warranties from investment banks and other financially responsible parties about the loans underlying the RMBS. "Today's announcement stands as an excellent example of how state and federal authorities can work together in a complementary manner," said Securities and Exchange Commission Chairman Christopher Cox. "I am most appreciative of the efforts of Attorney General Cuomo and his staff to consult with the Commission and coordinate their efforts in a way that is consistent with the Commission's pending rulemaking for credit rating agencies. The Attorney General's actions, as well as the comprehensive new rules for all nationally registered credit rating agencies that the Commission will consider next week, are motivated by our mutual desire to promote ratings with integrity and curb the questionable practices that contributed to the credit market turmoil."
Published
Jun 10, 2008
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