...This addendum to Fitch Research on "Rating Criteria for RMBS in Latin America," dated January 2015, available on Fitch's Web site at www.fitchratings.com, sets out the Brazil-specific issues addressed in Fitch Ratings' analysis of securities backed by Brazilian residential mortgage loans originated by banks and homebuilders. The addendum should be viewed together with the report noted above for a full understanding of Fitch's Brazilian RMBS criteria. This addendum replaces the addendum published on Feb. 28, 2012. Fitch has revised some of its assumptions relating to the estimation of default and recovery rates for Brazilian mortgage portfolios. The combined effects of the updated assumptions will be used to rate all new and existing Brazilian RMBS transactions. To date, all Brazilian RMBS are rated on the national long-term rating scale, identified by a (bra) ratings suffix. The RMBS transaction surveillance process involves a number of quantitative and qualitative factors and loan-by-loan...
