As a whole, Clayton rated financing "EV1" in the event that loan complied on the appropriate underwriting advice and are originated from compliance having applicable legislation

From , some times Morgan Stanley held a supplementary, post-minimization review' regarding loans flagged to have tie-call at acquisition so you're able to accept the latest loans to buy to own really worth. So it even more opinion occurred into the a number of times. For example, inside the a great current email address, a person in the fresh new valuation research group delivered an inventory regarding financing designated to own wrap-over to the head of valuation research, incorporating, "I suppose you should analysis 'magic' on this subject that?" An additional eg away from , so it even more remark resulted in clearing dozens of financing for sale shortly after less than an additional out-of review for every single loan document. By this a lot more comment, Morgan Stanley acknowledged funds for purchase if this got pointers proving that mortgages had CLTV ratios more than 100 %.

For the Morgan Stanley's giving documents, the representations to people was in line with the appraisals or purchase rates provided with originators from just who Morgan Stanley ordered subprime home loan loans.