Errors in RMBS calculation revealed

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Calculation errors within European residential mortgage-backed sec- urities (RMBS) are growing in frequency, with mistakes on the calculation of note amortisation, recording of losses and reserve fund levels appearing in several transactions, according to a report by Fitch Ratings. In at least two instances, the errors have forced originators to support transactions with additional cash to recoup lost revenue.

The mistakes have not led to any ratings downgrades, nor caused investor losses -

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