What do mortgage rating agencies base their ratings on?

QWhen did you start to see portents of trouble in subprime lending?

AThe earliest was in 2003. It seemed to me the Federal Reserve was creating an asset bubble in housing to offset the negative effects of the tech bubble collapse, 9/11, WorldCom, the Enron collapse and others. I suspected the bubble that was being created would cause a housing crash far surpassing anything previously. I figured it would peak when lenders had completely lost it.

Q And when did that happen?

A I sensed the recklessness of the lenders when I first saw them creating affordability products like interest-only mortgages. Something like this had been used in the 1920s, but had been considered toxic by bankers ever since. But as confidence grew in the idea that homes always go up in value, these products started to re-enter the market place.

I really thought they lost it when option ARMs were introduced to subprime borrowers. I saw it as banks offering housing credit cards to a population of har

What do mortgage rating agencies base their ratings on?school loans

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