Transaction managers would be a win for investors, Moody's says

By Ryan Bolger
09 Apr 2015

Investors in RMBS would benefit from a new type of transaction party that would protect trusts from potential conflicts of interest, Moody’s said in a report on Thursday.

Moody's said one particular conflict of interest would arise where mortgage servicers decided to overlook breaches of representations and warranties on mortgages. That could potentially occur when a servicer is affiliated with the mortgage originator, if a servicer is too focused on maximising the value of its mortgage ...

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