S&P to Rate Deals With NV Loans

Standard & Poor's Ratings Services has announced that it will rate structured finance deals that include Nevada loans governed by the state's new predatory lending law.The law, which takes effect Oct. 1, prohibits certain practices in regard to making home loans (as defined by the statute) and sets forth rules that lenders must abide by, S&P said. Violations could result in liability for the originators, purchasers, or assignees of home loans. The liability of purchasers and assignees for a loan that violates the act may exceed the unpaid principal balance of the loan, but the liability is capped, S&P said. The rating agency said it will require certain representations and warranties for deals containing Nevada loans. S&P can be found online at http://www.standardandpoors.com.