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Overall, Clayton rated financing “EV1” if mortgage complied towards appropriate underwriting recommendations and you can try came from compliance that have applicable laws

Starting in , every so often Morgan Stanley presented an additional, post-mitigation review’ regarding loans flagged to possess wrap-call at purchase to help you agree brand new financing for purchase getting worthy of. Which extra review took place for the a number of days. Such, in an excellent email address, a person in the latest valuation homework group delivered a listing of financing marked to own wrap-out to your mind off valuation due diligence, including, “I guess you will want to analysis ‘magic’ about you to?” In another particularly of , so it a lot more comment triggered cleaning all those loans for purchase once lower than a second out-of remark for each and every financing document. Through this most feedback, Morgan Stanley recognized loans for sale if it had pointers demonstrating the mortgage loans got CLTV percentages in excess of 100 percent. (more…)