The use of knowledge qualifiers in representations and warranties by originators, sponsors and issuers of mortgage-backeds may be one of the reasons RMBS investors remain wary of the market, according to Digital Risk, Maitland, Fla.

The analytics and advisory company has asked the American Securitization Forum, which is in the midst of a project aimed at restoring investor confidence in the market, to issue a guideline recommending against their use.

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