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Moody’s: Appraisal alternatives pose new credit risks

Moody’s: Appraisal alternatives pose new credit risks

“In seeking to reduce operational costs, increase efficiencies and address the shrinking ranks of US property appraisers, mortgage market participants are exploring the use of alternatives to traditional means of calculating property values and, in some cases, starting to use them more,” Moody’s analyst Lima Ekram said. “Their use in tasks that affect the credit quality of RMBS securitization collateral could, however, lead to a weakening of new RMBS transactions.”

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