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Moody's proposes update to methodology for rating US prime residential mortgage-backed securities

Moody's Investors Service is seeking feedback from market participants on proposed changes to its approach to rating US prime residential mortgage-backed securities (RMBS) backed by government-sponsored enterprise (GSE) and private label prime first-lien mortgage loans originated during or after 2009. Unless changes are made following the comment period, this updated credit rating methodology will be adopted as proposed. The proposed changes would enhance the methodology and applicable models for rating and monitoring ratings of US prime RMBS by updating components of our collateral analysis model known as Moody's Individual Loan Analysis (MILAN).