Drawing on reserve funds has become more common among U.K. subprime RMBS transactions, with two deals siphoning cash just this month and others likely to follow.

Last week Fitch Ratings and Standard & Poor's took action against Rooftop Mortgages' Farringdon Mortgages 1 U.K subprime issue, following a tap made on the transaction's reserve fund. S&P placed the Class M2 and B notes on credit watch with negative implications while earlier in the week Fitch placed the entire capital structure on ratings watch negative.

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