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: …