Moody's Investors Service is divulging some of the criteria in its originator assessments, which are used in conjunction with rating residential mortgage-backed securities transactions in Europe, the Middle East and Asia. Moody's said it primarily is focusing on each originator's origination, underwriting and closing practices and whether they are in line with good loan quality, as well as whether the originator is acting within its stated risk/reward strategy. Shivani Kak, a Moody's assistant vice president, further noted that the OAs focus only "on the originator's policies and practices on the loan performance as opposed to other factors such as the macro-economic environment and servicer performance."
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