Fitch Discusses Undocumented Borrower Programs in Latest U.S.'RMBS Mortgage Principles & Interest'

Business Wire, Feb 1, 2005

NEW YORK -- Fitch Ratings' perspective on undocumented borrower programs is one of the topics covered in the latest edition of Fitch Ratings' newsletter for U.S. RMBS, 'Mortgage Principles and Interest'.

While lending to non-U.S. citizen borrowers is not new, program parameters have ventured into uncharted waters by lending to undocumented borrowers, who do not have valid visas, permanent or temporary resident alien status, nor do they typically have a social security number.

Undocumented borrower loans may contain additional risk due to lack of formal credit history and FICO scores, as well as the lender's restricted ability to verify the true identity of the borrower. As such, Fitch recommends that originators address all risks and have solid procedures and controls in place before implementing any new program

The newsletter also includes Fitch's Outlook for the U.S. RMBS sector in 2005. To view or download a copy of 'RMBS Mortgage Principles and Interest', log on to the Fitch Ratings web site located at www.fitchratings.com, choose 'RMBS' under the 'Sectors' heading and then select 'Newsletters'.