Moody's Proposes Enhancements to Non-Prime RMBS Securitization

Moody's Investors Service is proposing a series of enhancements
aimed at bringing greater transparency to the securitization process
for non-prime residential mortgage-backed securities (RMBS). The
proposed changes include third-party oversight of the accuracy of loan
information and making loan-level performance information available to
transaction participants. In addition, Moody's proposes that issuers
provide stronger and more uniform representations and warranties to
investors regarding loan information, and that a third party be
responsible for monitoring and enforcing the representations and
warranties. These proposals reflect conversations Moody's has had with
market participants, industry trade organizations and oversight
authorities.

The rating agency's consideration of third-party oversight to
verify the accuracy of loan data would include data provided to
originators from borrowers, appraisers, and brokers. Moody's proposes
that information from the third-party review be available to investors
and other transaction participants that request it.

"Third-party review will enable Moody's and transaction
participants to make more informed credit distinctions regarding the
quality of lenders' underwriting standards and the reliability of
information provided by issuers," says Moody's.

Moody's also proposes making greater credit distinctions based on
the financial strength of the party providing representations and
warranties.

The rating agency also recommends that securitization sponsors
standardize and expand RMBS performance reports, including the
provision of loan-level information for public transactions prior to
closing and throughout the life of the securitization.

Other non-prime sectors are performing in line with expectations,
however, Moody's will consider whether these proposals should apply to
other non-prime securitized assets, such as non-prime auto loans,
non-prime private student loans and non-prime credit card receivables,
and will solicit the views of market participants and oversight
authorities through a future "request for comment" proposal.

A full explanation of Moody's proposed changes, "Moody's Proposes
Enhancements to Non-Prime RMBS Securitization," is available on
www.moodys.com. Moody's is inviting participants in the structured
finance market and other interested parties to review and comment.
Feedback can be sent to cpc@moodys.com.

For more information please see www.moodys.com.

Moody's Investors Service is a leading provider of credit ratings,
research, and risk analysis. Moody's commitment and expertise
contributes to stable, transparent and integrated financial markets,
protecting the integrity of credit. The firm's ratings and analysis
track debt covering more than 100 sovereign nations, 12,000 corporate
issuers, 29,000 public finance issuers, and 96,000 structured finance
obligations. Moody's also publishes credit opinions, research and
commentary, serving more than 9,300 customer accounts at some 2,400
institutions around the globe. Moody's Investors Service is a
subsidiary of Moody's Corporation (NYSE: MCO), which reported revenue
of $2.0 billion in 2006, employs approximately 3,600 people worldwide
and maintains a presence in 27 countries. Additional information about
the company is available at www.moodys.com.