Moody’s Investors Service’s downgrading of residential mortgage-backed securities appears to be accelerating after the credit rating firm recently revised its criteria for pools of loans securitized before 2006. On Friday, Moody’s lowered the rating on $1.1 billion of RMBS issued by Asset Backed Securities Corp. and $1.3 billion by Bear Stearns. Then over the weekend it downgraded hundreds of millions more of RMBS issued by Carrington, Soundview, Wells Fargo Home Equity Trust and Aegis ABS Trust, nearly all involving subprime loans.
