RMBS: U.S. Home Equity Investment Contract Securitization Rating Methodology

Executive Summary

This document describes Kroll Bond Rating Agency, LLC and its rating affiliates’ (collectively, “KBRA”) methodology for rating U.S. structured finance transactions backed by Home Equity Investment Contracts (HEIs) and similar collateral. The key components of KBRA’s U.S. HEI rating methodology include the following:

KBRA employs judgment in the application of all our methodologies, which are developed with the goal of producing credit ratings that perform in accordance with KBRA’s published rating definitions. This may result in situations where certain aspects of the methodology are not employed, de-emphasized, or modified to address additional considerations in the analytical process,…