RMBS: U.S. RMBS Rating Methodology

Executive Summary

This document describes Kroll Bond Rating Agency LLC and its rating affiliates’ (collectively, “KBRA”) methodology for rating U.S. residential mortgage-backed securities (RMBS). The key components of KBRA’s U.S. RMBS Rating Methodology include the following:

Each of the four key components described herein are analyzed individually, but are also considered together, if applicable, in order to form the basis for KBRA’s RMBS rating process. The process employed regarding each component may inform or identify risks relevant to another component or mitigate them. KBRA expects this methodology to be used to apply ratings to RMBS backed by various collateral types which generally include, but are not limited to:

There are also transactions that are secured by large pools of…