TEXT-Fitch:Frequently asked questions in Dutch RMBS

(The following statement was released by the rating agency)

Jan 24 - In a new special report, Fitch Ratings aims to answer the questions most commonly asked about Dutch RMBS transactions.

The Dutch RMBS market is the second-largest in Europe and has well-established issuer programmes in place. Historically, placement has been focused on European investor demand, but Fitch has seen increasing interest in Dutch RMBS from investors in the US and other jurisdictions. While familiar with RMBS in general, these investors are new to Dutch RMBS. Fitch has consequently addressed the most frequently asked questions from investors to the agency about the Dutch market and particular features that differentiate the Dutch mortgage market, mortgage products and its RMBS structures from its European peers.

Key questions received by Fitch and answered, by subject, in this special report are:

Asset Performance Drivers

-- How does Fitch treat high LTV mortgages in the Netherlands?

-- How does Fitch treat interest-only loans?

-- What impact does Fitch expect the revised mortgage code of conduct to have on the mortgage market?

-- What kind of support do social security benefits provide for the unemployed?

-- How would a possible abolishment of the interest tax deduction rules affect the market and would there be any impact on Dutch RMBS?

NHG Scheme

-- How does the NHG guarantee work?

-- What credit does Fitch provide to the NHG guarantee?

-- Does Fitch give credit to repurchase commitments provided by the seller?

Structural Features

-- How does the swap work in Dutch RMBS transactions?

-- What kind of set-off risks does Fitch estimate in its analysis of Dutch RMBS transactions?

-- How do the 'AAA' subordination levels compare with the expected level of losses in Dutch RMBS?

RMBS Outlook

-- How will sovereign deterioration impact Dutch RMBS performance?

-- What is Fitch's outlook on prepayment rates and extension risk in Dutch RMBS?

-- What is Fitch's outlook on asset and ratings performance for Dutch mortgages and RMBS?

The report, entitled "Frequently Asked Questions in Dutch RMBS", is available at www.fitchratings.com.

Link to Fitch Ratings' Report: Frequently Asked Questions About Dutch RMBS

here