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 rating to the surveillance committee each month, and when the committee convened it reviewed only a limited subset of the outstanding RMBS and Re-REMIC ratings, the SEC said in a statement. DBRS did not admit or deny the findings.
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