DBRS Publishes Updated Representations and Warranties Criteria for U.S. RMBS Transactions

DBRS has today published an updated representation and warranty (R&W) methodology which outlines the loan level R&Ws it expects to be included in U.S. residential mortgage-backed securities (RMBS) transactions. The R&Ws contained herein replace those in the DBRS methodology report, “Representations and Warranties Criteria for U.S. RMBS Transactions”, dated January 2010.

DBRS has added certain key factors that it considers when assessing the quality of a transaction's R&Ws including:

--Enforcement mechanisms and remedies in place for breaches of R&Ws;
--Financial strength of the R&W provider;
--Operational soundness of the originator; and
--Third party loan-level due diligence.
In addition to the standard list of R&Ws DBRS expects to receive for securitizations of newly-originated mortgages, seasoned and non-performing loans, the updated methodology also incorporates new R&Ws related to loans that fall under Qualified Mortgage and Ability-to-Repay rules.

No material changes have been made to the methodology. Accordingly, no rating actions will be taken on any outstanding U.S. RMBS transactions. This methodology, effective as of the date of this press release, supersedes any previous methodologies. The new methodology will not result in any rating actions. DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.