Why have previously approved private label securities become ineligible?
• • There are several reasons why private label securities may become ineligible. Since the HLB requires all securities to have AAA ratings, any security that falls below this level or which becomes split-rated will be deemed ineligible. The HLB performs a monthly analysis to verify that pledged securities meet minimum levels of debt-service coverage and LTV values. Should these securities fall below our internal guidelines, they will likewise be deemed ineligible.
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