DBRS Publishes Methodology: Operational Risk Assessment for U.S. ABS Servicers

DBRS has today published its methodology for the operational risk assessment of U.S. Asset-Backed Securities (ABS) servicers. In this methodology, DBRS outlines its procedures used to evaluate the quality of the parties that service or conduct backup servicing on the loans (or leases as applicable) that are about to be securitized or have previously been securitized in a transaction rated by DBRS. While DBRS does not assign formal ratings to these processes, it does conduct operational risk reviews to determine if a servicer is acceptable and incorporates the results of the review into the rating process for new transactions and into the surveillance process for outstanding transactions rated by DBRS.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.