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BEAR STEARNS SERIES 1991-1A, 1B, 1C RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 BEAR STEARNS SERIES 1991-1A, 1B, 1C RATED 'AAA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 26 /PRNewswire/ -- Bear Stearns Secured Investors Inc. II (BSSI) $112.9 million Adjustable Rate Mortgage Pass-Through Certificates, Series 1991-1A, 1991-1B, and 1991-1C are rated 'AAA' by Fitch. The rating is based primarily on the underlying collateral and the level of credit enhancement. Fitch also believes that Bear Stearns Mortgage Capital Corp. (BSMCC) and PHH US Mortgage Corp. will provide excellent master servicing and will have a positive impact on the pool's performance.
 The collateral consists of adjustable rate mortgages acquired by BSMCC from Security Pacific National Bank as well as loans originated by PHH US Mortgage, a wholly owned subsidiary of PHH Corp. BSSI acquired the loans from BSMCC and PHH. The Class 1A certificates are backed by loans that adjust every three years to the rate on the U.S. Treasury adjusted to a constant maturity of three years (3 year CMT). The Class 1B certificates are backed by loans that are fixed for the first seven years and then adjust every three years to the 3 year CMT. The loans backing the Class 1C certificates adjust semi-annually after a fixed period of 5 years to the average rate on 6-month certificates of deposit as published by the Federal Reserve Board. The Class 1A and 1B mortgages were originated by PHH and the Class 1C mortgages were originated by Security Pacific.
 The weighted average loan-to-value ratio of 75 percent suggests that a limited number of defaults should occur. However, adjustable rate mortgages present an additional risk of default because of payment shock experienced by the borrower if there is a sharp rise in interest rates. Partially mitigating this risk is the 100 percent owner occupancy and over 95 percent of the loans were originated under a full or alternative documentation program.
 Credit enhancement for the Class 1A, 1B and 1C certificates will be provided by a 10.5 percent GEMICO pool policy. In addition, losses resulting from special hazards and bankruptcies and loans repurchased as a result of borrower fraud will be covered by three separate letters of credit issued by Svenska Handelsbanken. Fitch believes the levels of credit enhancement support the 'AAA' rating.
 BSMCC will act as master servicer with respect to those loans acquired by BSMCC from Security Pacific and PHH will act as master servicer for those loans originated by PHH. Fitch believes that BSMCC and PHH will provide excellent servicing and will have a positive impact on the pool's performance.
 -0- 11/26/91
 /CONTACT: Suzanne Mistretta, 212-908-0500, or Louis Colosimo, 212-908-0567, both of Fitch/ CO: Bear Stearns Secured Investors Inc. II ST: New York IN: FIN SU: RTG


KD -- NY092 -- 7524 11/26/91 17:23 EST
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Publication:PR Newswire
Date:Nov 26, 1991
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