DBRS Publishes Updated Third-Party Due Diligence Criteria for U.S. RMBS Transactions

DBRS, Inc. (DBRS) published its updated Third-Party Due Diligence Criteria for U.S. RMBS Transactions. This methodology, effective as of the date of this press release, supersedes the previous methodology under the same title dated September 17, 2014.

In this methodology, DBRS:
-- Outlines its approach to assessing third-party due diligence reviews for U.S. RMBS transactions that includes a comprehensive regulatory compliance, credit review, data integrity check and property valuation analysis;
-- Provides guidelines on collateral deficiencies, the assessment of due diligence firms and the selection of a random and statistically valid sample size.
-- Details the loan-level grades of “A” through “D” based on the findings of each review segment as it relates to regulatory compliance, credit and property valuation.

The primary update relates to the sample size selection. DBRS migrates from a sequential sampling method to a single sample approach. The new approach is more consistent with market standards and maintains the same confidence level and threshold error rate as the previous methodology.

The Methodology does not set forth any material changes from the previous methodology. DBRS does not anticipate any rating changes to existing RMBS ratings as a result of the methodology update.

Notes:
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.