Fitch Sizes Up OTS/OCC Pre-emptions

Fitch Ratings has indicated that it will rate properly identified high-cost loans in areas where either the Office of Thrift Supervision or the Office of the Comptroller of the Currency has indicated that it pre-empts what Fitch considers to be problematic anti-predatory lending laws."Fitch has previously indicated that it will not rate residential mortgage-backed securities (RMBS) transactions which contain mortgage loans that are originated in jurisdictions which have enacted legislation that may result in unlimited purchaser or assignee liability for predatory lending practices of an originator, broker or servicer," Fitch said in an Aug. 21 report. "Such criteria is still applicable, including the assessment of additional credit enhancement, for loans originated in any jurisdiction by non-OTS-regulated entities and in Georgia by any entity which is not an OCC-regulated entity or a Georgia-chartered bank or savings association." Fitch Ratings can be found on the Web at http://www.fitchratings.com.