Standard & Poor's Corp. said Monday that it had raised its estimate of cumulative losses on residential mortgage-backed securities issued from 2005 through 2007. The changes will have the biggest impact on ratings of prime securitizations, said S&P credit analyst Jeremy Schneider.
S&P now estimates lifetime losses for prime mortgage-backed securities issued in 2007 will total 9.75%, up from 6.97% previously. For prime mortgage paper issued in 2005, the lifetime loss projection rose to 4% from 2.82%.
