189 pg rearni ot da pd rdoi tvi iodni na lg tei mq uei t af obrl et hr ee d be omrpr ot iwo ne rr iagfht et sr ttoh et hfeo rbeocrl or os wu reer. sMa loes tt oU Sr esdt ea et ems tr hi geh pt . rAo pset ar tt yu, t ot hr iys rtei md eemppetri oi ond r ii sg hktncoawn nb ea sr at ht hee pr eprri oo bd l eomf sattai ct uf toorr cyr er eddi teomr spat iso int influences the value of the property at the auction. Higher redemption rights for borrowers result in lower creditor friendliness. Fd ienbat lol yr ,s s’ op me res os nt aatlebs ehl oa nv eg ilna gwss. Nr eesvterri ct ht ienlge st sh, ei nc rme do isttosrtsa ft reos mt h teackri endg i pt oors isseas lslioown eodf tdoe bo bt ot ra’isn aasds ee tf si c, iiennccl uy dj ui ndgg et hmeei rn ts wa l ah ri cyh. Ienms po omweesrtsatthe es , ctrheed idt eo fri ct oi esneciyz ej uadngyeomf et hnet is granted automatically when the purchase price of the house is lower than the da esbtta toewwe di t, hh odwe fei cvieern ci ny mj uodsgt mUeSn st t iast ems ot hr ee cc rr ee dd ii tt oo rr - mf r iuesntdfliyl e t ha al na wosnuei t .wHi tehnocuet, (Ghent, 2014). 5.2.3 Creditor Rights: RMBS Rating Methodologies Literature pertaining to creditor rights in the securitization market is rather lVi mi n ikt e( d2 .0 I1n2 )t hs ehior ws ttuhdayt corne dEi tuorroppreoatne catsi os ent m- baatctkeer ds f soer csuerciut irei st i z( aAtBi oSn) , t Fr aanbsoazcztii oannsd. They state that creditor protection – specifically no automatic stay on the assets57 – is considered favorable by investors and is expected to be positively reflected in credit ratings, as the creditor has more control over the collateral. However, little ac rt teedni tt iroant i ni sg g. Gi vue ne t taol . w( 2h0e 1t h8e)ra dr ei f foenree nocf et sh ei nf ecwr ewd iht oo rf irni dg hetvsi daer en cree fi nl e ct ht eedi r isnt ut hd ye oc of rf ipromr -alteev feilndaantcai ni ng s5 1a rdeehvieglhoepre idnacnodu dn et rvieelso wp iint hg cs ot ruonntgr ei ersc, rt he da ti tcorrerdi igt hrtast. i n g s o f 57 An automatic stay prevents secured creditor from obtaining ownership of the security (Qian and Strahan, 2007). Chapter 5 - The Impact of Creditor Protection
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