Fitch Ratings has become the second major credit rating agency to weigh in on the New Jersey anti-predatory lending law.Fitch will continue to rate residential mortgage-backed securities containing home loans from New Jersey, as long as those loans are not "high-cost home loans" as defined by the law. This reaction is milder than that of Standard and Poor's, which said that it would not rate loan pools containing either high-cost home loans or covered home loans, a category in the law that falls between a regular home loan and a high-cost home loan. Both rating agencies' concerns about the law stem from its assignee liability provisions, which they say makes it impossible to assess the risk carried by affected loans.
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