Fitch Ratings said that the securitization industry supports its plan to implement a more forward-looking, and countercyclical RMBS modeling framework. The model is based on projected home price movements where credit enhancement rises as risk enters the system and dips when the risk is neutralizing.

The rating agency closed the comment period on its proposed new U.S. RMBS rating criteria and said that the feedback from numerous RMBS investors, regulatory agencies and research firms was widely positive and constructive. The different market participants shared Fitch's perspective on its new approach to modeling credit risk in new-issue RMBS transactions.

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