Moody's Investors Service Inc. on Friday downgraded $2.2 billion of securities backed by alternative-A mortgages issued in 2005 by Residential Funding Co. LLC, a unit of what is now Ally Financial Inc.
Moody's has downgraded several hundred billion dollars of residential mortgage-backed securities since the start of April as falling home prices, high joblessness and the slow economy led credit raters to revise loss expectations.
Moody's in January put $572.7 billion of alt-A mortgage-backed securities issued from 2005 through 2007 on review for possible downgrade after it revised its loss forecasts.
Alt-A loans were typically given to borrowers who generally chose not to document assets and/or income.
The former GMAC Inc. changed its name to Ally on May 10.