Thursday March 27, 03:37 PM
Tighter lending criteria threatens wider UK RMBS asset performance - Fitch
MUMBAI (Thomson Financial) - Fitch Ratings said the gathering pace of tightening lending criteria in the UK mortgage market could have negative asset performance consequences across the wider RMBS market.
However, these developments should not have any immediate, negative impact on UK RMBS ratings, the agency added.
It (Frankfurt: A0MLX5 - news) noted that the credit crunch has already impacted the UK non-conforming RMBS market in terms of product withdrawals and re-pricing. Now, however, it has started to impact the mainstream mortgage market with conforming lenders tightening criteria at the riskier end of their product ranges, most noticeably with respect to loan-to-value (LTV (LTVCQ.PK - news) ) mortgages.
Nevertheless, ratings are expected to remain stable for conforming, buy-to-let and most non-conforming RMBS, with the exception of more recent vintage non-conforming transactions, which have a general negative rating outlook.
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