RMBS: Reverse Mortgage Securitisation Global Rating Methodology

Introduction

This report describes KBRA’s methodology for the rating and ongoing surveillance of reverse mortgage transactions.¹ This methodology is a general framework, and as such, it does not specifically address country or jurisdiction-specific risks. These will be considered in conjunction with our rating analysis and highlighted, as relevant, in KBRA’s transaction reports.

KBRA employs judgement in the application of its rating methodologies. This may result in situations where certain aspects of the methodology are not employed, de-emphasised, or modified to address additional considerations in the analytical process where deemed appropriate.

Overview

This reverse mortgage methodology was developed with the goal of producing and maintaining credit ratings that perform in accordance with KBRA’s published rating definitions. It includes both qualitative and quantitative elements that are encompassed within the following components:

KBRA is a global full-service rating agency with a mission to set a standard of excellence and integrity. Established in 2010, KBRA remains dedicated to the restoration of trust in credit ratings by creating new standards for assessing risk and by offering timely and transparent ratings. KBRA provides market participants with an alternative solution by delivering in-depth research across various sectors within the United States and European markets. We strive to provide the investment community with the products and tools needed to make informed investment decisions.