...This report addresses Fitch Ratings' criteria assumptions for analysing the use of lenders' mortgage insurance (LMI) in RMBS transactions. The published criteria assumptions will be used for rating new and existing RMBS transactions where LMI is present. They will also apply to covered bond programmes where the cover pool collateral includes residential mortgages with LMI present. Use of LMI: LMI is primarily used in the United States, Canada and Australia by financial institutions as a tool for risk mitigation and to enhance access to capital markets. It is used to a significantly lesser extent in the UK and Europe, with only minor usage in Asia....
