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Rating Agencies Under Fire- Again

The New Republic has posted an article by Alex Klein this week on failed (so far) efforts to enact a more rational regulatory framework for the rating agencies, which are in the news again as the threat of a downgrade for America’s AAA credit rating looms.

Bank of America Settlement: Turning Point for RMBS Investors

Bank of America’s $8.5 billion settlement with 22 mortgage-bond investors this week marks an important turning point for our industry, erasing some of the uncertainty that continues to drag down the RMBS sector.

It is the largest settlement with investors of its kind since the housing collapse and promises to pave the way for others. That is welcome news to investors who have for years now been pressing to be repaid for losses they believe they should not have taken.

RMBS Fallout: Were Investors Duped?

One positive outcome from the Financial Crisis Inquiry Commission so far is the increased attention to the mortgage due diligence process for residential mortgage-backed securities.

Acts of Greater Courage

Shawn Gravelin, a manager in Allonhill's credit risk management group, has guest written this blog post.  He and other guest writers will appear in the Allonhill blog from time to time.  His post appears below.

Acts of Greater Courage
By Shawn Gravelin

American Securitization Forum's New RMBS Rep and Warrant Guidelines

The American Securitization Forum's Project Restart team released new guidelines for RMBS reps and warranties on December 15. These guidelines are perfectly in line with what the industry needs to adopt.

The suggested reps and warranties address fraud on a level never heard of before. The subordinate investor was always known as the "fraud investor," and a specific fraud rep was a rare thing.

Not Necessarily Gold In Them Thar' Hills (Could Be Gold Dust)

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