Fitch Updates U.S. Residential Mortgage Servicer Advance Receivable Trust Rating Criteria
December 19 2014 - 5:38PM
Business Wire
Fitch Ratings has updated its criteria report, 'U.S. Residential
Mortgage Servicer Advance Receivable Trust Rating Criteria'. The
report updates and replaces the report with the same title dated
Nov. 27, 2013. The criteria remain fundamentally unchanged in all
aspects with the exception of the 'AAsf' stress to Fitch's
collection timeline assumption. Fitch increased the length of time
that it assumes no collection of advances will be received to seven
months from five to better align the stresses throughout the rating
categories. Fitch does not currently maintain ratings on any
servicer advance receivable trust (SART) transactions.
The criteria report summarizes Fitch's current criteria for
analyzing the credit risk inherent in SART transactions
collateralized by pools of outstanding and/or future servicer
advances made on U.S. residential mortgage backed security (RMBS)
deals. The criteria take into account the servicer's historical
recovery rates, the deal structure as well as any structural
mitigants.
The key risk factors in Fitch's analysis of SARTs include the
following:
--The priority of repayment of servicing advances on the
underlying RMBS;
--The timeliness of reimbursement cash flows to the SART to make
bond payments as they become due;
--The operational and financial strength of the servicer.
The report is available at 'www.fitchratings.com' or by clicking
on the link below.
Additional information is available at
'www.fitchratings.com'.
Applicable Criteria and Related Research: U.S. Residential
Mortgage Servicer Advance Receivable Trust Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=836588
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Fitch RatingsVanessa PurwinSenior Director+1-212-908-0269Fitch
Ratings, Inc.33 Whitehall St.New York, NY 10004orChristine
YanDirector+1-212-908-0838orSuzanne MistrettaSenior
Director+1-212-908-0639orMedia RelationsSandro Scenga, +1
212-908-0278sandro.scenga@fitchratings.com