SEC says credit rating agency didn't monitor mortgage-related securities

WASHINGTON (MarketWatch) -- The Securities and Exchange Commission fined DBRS Inc. $6 million for allegedly misrepresenting surveillance methodology for ratings of mortgage-related products. The SEC said DBRS misrepresented it would monitor on a monthly basis each of its outstanding ratings of U.S. residential mortgage-backed securities and re-securitized real estate mortgage investment conduits by conducting a three-step quantitative analysis and subjecting each rating to review by a surveillance committee. The firm did not conduct the analysis on a monthly basis nor did it present each......(read more)

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