Wednesday, May 19, 2010

Moody's Investors Service downgraded nearly $15 billion of residential mortgage-backed securities $WFC $C

DOW JONES NEWSWIRES Moody's Investors Service downgraded nearly $15 billion of residential mortgage-backed securities made up of jumbo loans issued by Wells Fargo & Co.(WFC), Citigroup Inc. (C) and PHH Corp. (PHH).Ratings agencies have been slashing their ratings on RMBS deals after revising the amount of losses expected as delinquencies continued to climb and home prices kept falling.Jumbo loans, issued to homeowners needing at least $417,000 in financing,have seen a sharp rise in delinquencies. However, the total delinquency rate remains well below those of other types of home loans.Moody's downgraded ratings on 245 tranches of 12 RMBS deals by Wells Fargofrom 2005 through 2007. Ratings were confirmed on 10 tranches while two were upgraded. The RMBS were valued at $8.1 billion.For $6.2 billion of 20 RMBS deals by Citigroup from 2005 through 2008, the ratings agency downgraded 228 tranches, affirmed 15 tranches and upgraded six.Moody's also issued downgrades on $537 million of RMBS tranches by PHH from2005 to 2008.-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;

No comments:

Post a Comment