NEW YORK--(BUSINESS WIRE)--Fitch Ratings has updated its criteria report, 'U.S. Residential Mortgage Servicer Advance Receivable Trust Rating Criteria'. The report updates and replaces the report with the same title dated Nov. 27, 2013. The criteria remain fundamentally unchanged in all aspects with the exception of the 'AAsf' stress to Fitch's collection timeline assumption. Fitch increased the length of time that it assumes no collection of advances will be received to seven months from five to better align the stresses throughout the rating categories. Fitch does not currently maintain ratings on any servicer advance receivable trust (SART) transactions.
The criteria report summarizes Fitch's current criteria for analyzing the credit risk inherent in SART transactions collateralized by pools of outstanding and/or future servicer advances made on U.S. residential mortgage backed security (RMBS) deals. The criteria take into account the servicer's historical recovery rates, the deal structure as well as any structural mitigants.
The key risk factors in Fitch's analysis of SARTs include the following:
--The priority of repayment of servicing advances on the underlying RMBS;
--The timeliness of reimbursement cash flows to the SART to make bond payments as they become due;
--The operational and financial strength of the servicer.
The report is available at 'www.fitchratings.com' or by clicking on the link below.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: U.S. Residential Mortgage Servicer Advance Receivable Trust Rating Criteria