Moody's Investors Service Inc. downgraded its ratings on $484.7 million in jumbo residential mortgage-backed securities Tuesday, continuing the rating agency's spate of downgrades in recent weeks.
Delinquency rates on jumbo loans, issued to homeowners needing at least $417,000 in financing, have been increasing faster than for other home loans on a month-to-month basis. However, the rate remains well below those on other types of loans.
Tuesday's downgrades included $368 million in residential mortgage-backed securities issued by CWMBS Mortgage Trust in 2004, $102 million in residential mortgage-backed securities issued by Bella Vista Mortgage Trust in 2004 and $2.7 million issued by Provident Funding Mortgage Loan Trust in 2004.
Many of the deals, especially those from CWMBS Mortgage Trust (a unit of Countrywide Financial Corp., which Bank of America Corp. acquired last year), had held a top Aaa rating.
Moody's has said it has revised its loss expectations on jumbo residential mortgage-backed securities in recent months.