A New Jersey defense attorney has been named the central figure in a 14-count indictment with three others who are accused of racketeering, murder and $1.1 million in mortgage fraud.
Moody's Investors Service announced that it placed 948 tranches from second-lien residential mortgage-backed securities on review for a possible downgrade.
The sharp decline in real estate prices has hurt loss rates during the past few years, the New York-based company explained.
But an even bigger factor is that many second-lien borrowers were at 100 percent loan-to-value at origination, and the 30 percent decline in prices has left them well above 100 percent LTV.