Mortgage Security Ratings: Now Twice As Fast!

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VantageScore has managed to sell Fitch Ratings on the idea that they should use their FICO score replacement as a means to rate mortgage securities. In general I like the idea. Instead of vague "prime" or "Alt-A" terms, or using FICO scores that vary depending on the agency delivering them, there is a consistent measure that can flow up to the aggregating securities for ratings, to define tranches, etc.
Like it or not, securitizing mortgages continues to be essential to mortgage financing, a rather significant component of the economy. Pariahs though the ratings companies and terms like "CDO" look today, and as much as I hate introducing simple "scores" to complex credit and risk analysis, something practical has to be done. And, like I always say, better a credit score derivative blended by two ratings agencies, than just one.
Fitch Becomes First Rating Agency to Accept Mortgage Loans Based on VantageScore [BusinessWire]

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