Content area
Full Text
Moody's said July 31 that it is refining its methodology for rating residential mortgage securitizations backed by Alt-A loans, including option ARMs.
Moody's said the changes, which are effective Aug. 1, are in response to collateral weaknesses in Alt-A pools securitized in 2006.
Moody's said the increases in loss estimates range from 10% for stronger pools to more than 100% for weaker pools.
The weakest 5% to 10% of loans are projected to be the largest contributor to the overall increase in...