Fitch Unveils RMBS Rating Model

Fitch Ratings has developed a new rating system for determining potential losses from U.S. residential mortgage-backed securities, reports Bloomberg.

Fitch Ratings has developed a new rating system for determining potential losses from U.S. residential mortgage-backed securities. The new model is designed to help predict which homeowners are likely to default on their loans, thus causing losses for RMBS. The credit rating agency says it is hoping to hear from investors during a 45-day comment period.

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