State regulators, possibly within days, will approve the hiringof a firm to reassess the evaluations of 17,600 residentialmortgage-backed securities downgraded by the major credit ratingfirms, an official said.
A request for proposals to evaluate the securities is beingprepared by the National Association of Insurance Commissioners,according to Hampton Finer, a New York deputy insurancecommissioner. The NAIC is acting on a request by a life insurertrade group.
The American Council of Life Insurers called for the change inSeptember, arguing to the NAIC that current ratings by NationallyRecognized Statistical Rating Organizations (NRSRO) failed todistinguish between securities with a total loss and thoseprojected for minor losses.
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