Moody’s Investors Service

Improved Due Diligence is Key to Secondary Market Revival 

It will take greater accountability in financial transactions, specifically more stringent due diligence, for investors to be confident enough to buy mortgage-backed securities again. The stock and bond markets have rebounded strongly over the past year from the global financial meltdown of 2008. But recovery in the market for private residential mortgage-backed securities continues to be held up by continuing concerns about the underpinnings of these deals.