BTC Mortgage Investors Trust 1997-S1 Secd Nts Upgrd by Fitch IBCA.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 17, 2000 Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals upgrades BTC BTC Baku-Tbilisi-Ceyhan (crude oil pipeline) BTC Belgische Technische Coöperatie (Dutch: Belgian Technical Cooperation) BTC Berlinale Talent Campus BTC Business Travel Coalition Mortgage Investors Trust's 1997-S1 secured notes $20.6 million class D to `AAA' from `A'. The class B and C certificates were paid in full, therefore their ratings were withdrawn. The rating action follows Fitch IBCA's annual review of the transaction which closed in December 1997. The rating upgrade is based on the significant increase in subordination level for class D. Additional considerations recognize the servicer's success in recovering unpaid principal from liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy , the large percentage (77%) of performing loans, and the $2.3 million reserve account. Concerns include the uncertainty associated with non-performing assets and the lower quality of the non-performing pool. Since closing, 128 loans have been liquidated through pay-off, discounted pay-off (DPO DPO Direct Public Offering (finance/investment) DPO Direct Public Offering DPO District Police Officer (Pakistan) DPO Days Payables Outstanding DPO Document Process Outsourcing DPO Days Past Ovulation ), or real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most (REO reo Noun NZ a language [Maori] ) sale. The servicer, Ocwen Federal Bank, has recovered approximately 76% and 114% of the outstanding loan balance on loans liquidated through DPO and REO sale, respectively. The ratio of performing loans to non-performing loans (77% vs. 23%) has remained stable since closing (75% vs. 25%). As of February 2000, the collateral consists of 59 performing and 25 non-performing assets (non-performing loans are defined as more than 59 days delinquent) with a principal balance of $102.2 million. Due to the fast pay structure and the number of loans liquidated, the subordination level for class D has significantly increased, warranting the upgrades. In addition, the collateral balance represents almost five times the remaining debt. Fitch IBCA will continue to monitor the transaction, as surveillance is ongoing. |
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