Fitch Updates RMBS/HEL Cash Flow Criteria

Fitch Ratings has updated its cash flow modeling criteria for rating U.S. residential mortgage-backed securities and home equity loan asset-backed securities.Fitch also said it is now using Intex Dealmaker as its primary cash flow modeling tool. The revised RMBS and HEL criteria reflect changes to the prepayment, loss distribution, and interest rate assumptions used when rating deals with senior-subordinate/overcollateralization structures that are typical in subprime and some alternative-A securitizations, Fitch said. The rating agency also announced an updating of its criteria for rating net-interest-margin securitizations as a result of the changes in its cash flow modeling criteria. Fitch can be found online at http://www.fitchratings.com.