A blistering critique from Moody's Investor Service Inc. of rating practices for commercial securitizations has prompted calls from mortgage bankers for more scrutiny and regulation of the national rating agencies, and the result could be onerous new legislation for these firms.

Moody's issued a special comment Nov. 1 that faulted the securitized commercial real estate rating process employed by some agencies and warned of a "marked deterioration in the credit quality of commercial mortgage-backed securities" that has become prevalent in the "feeding frenzy" of the rapidly growing market.

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