DBRS Publishes Methodology for Canadian Structured Finance Operational Risk Assessment and Mortgage Servicer Evaluation

DBRS Limited (DBRS) has today released the methodology “Operational Risk Assessment and Residential Mortgage Servicer Evaluation for Canadian Structured Finance.” The methodology incorporates the existing methodology of Canadian Residential Mortgage Servicer Evaluations and is expanded further to describe DBRS’s approach to evaluating the quality of the parties that originate and service loans, leases or receivables that are about to be securitized or have previously been securitized in a Canadian structured finance transaction rated by DBRS.

Except for residential mortgage servicers, DBRS typically does not assign formal evaluations; nevertheless, it does conduct operational risk reviews to determine if an originator and/or servicer is acceptable and incorporates the results of the review into the rating process.

DBRS has determined that the implementation of the methodology will not result in any impact on existing Canadian structured finance ratings.