Mortgage-backed securities are assigned ratings by:

Question

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Mortgage-backed securities are assigned ratings by independent rating agencies such as Standard & Poor's or Moody's. These agencies evaluate the creditworthiness of the underlying mortgages and assign a rating to the security based on the likelihood of default. This rating informs investors of the risk associated with the security and helps them to make informed investment decisions. The Treasury and the Fed do not assign ratings to mortgage-backed securities, and the mortgage originator only originates the mortgages and does not assign ratings to the resulting securities.

Mortgage-Backed Securities Are Assigned Ratings By