C-BASS Completes $120 Million REMIC C-BASS TRUST 1998-3.NEW YORK--(BUSINESS WIRE)--Dec. 18, 1998--C-BASS, a recognized leader in loss mitigation for delinquent residential mortgages, today announced that it has closed on a $120,121,722 securitization, underwritten by Greenwich Capital Markets, Inc.. The publicly issued transaction, C-BASS C-BASS Credit-Based Asset Servicing and Securitization TRUST 1998-3, ASSET-BACKED CERTIFICATES, Series 1998-3, is rated by both Standard & Poor's Rating Services and Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc. In addition, MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corporation is providing credit enhancement on the Class A Certificates with an irrevocable and unconditional certificate guaranty insurance policy. This issuance represents C-BASS' sixth securitization and its first public transaction since it was formed approximately 2 1/2 years ago. The securitization consists of seven classes of certificates, including four investment-grade classes, Class AF and AV (together, the Class A Certificates), each rated AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. / Aaa and the Class BF and BV Certificates (the Class B Certificates) that carry BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. / Baa3 ratings. The additional classes of certificates include the Class OC-1 and Class OC-2 and the Class R. The transaction is backed by $66,233,023 of fixed rate mortgage loans (GROUP 1), and $54,719,492 of adjustable rate mortgage This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. loans (GROUP 2). The Certificates are secured by conventional, one-to-four family, first lien residential mortgage loans. The $117,292,476 of Class A certificates were segregated into two groups, each receiving as its primary source of funds distributions from one of the two collateral groups. The $64,898,563 Class AF Certificates are backed by the GROUP 1 mortgage pool and structured with a fixed pass-through rate of 6 1/2 percent, while the $52,393,913 Class AV Certificates are backed by GROUP 2 and carry a variable pass-through rate with a spread to one month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). of 65 basis points. The Class AF and AV certificates are both senior certificates and have been fully subscribed. The other classes are currently being retained by C-BASS. Servicing for the underlying collateral is performed by Litton Loan Servicing LP, a C-BASS company. Litton is an approved servicer by all four major rating agencies and the four major bond insurers. "We are delighted with the level of interest in this securitization," said Saul Sanders, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of C-BASS. "It indicates a market awareness of our expertise in managing risk and Litton's ability to mitigate losses on delinquent loans through our proprietary default servicing platform," he added. C-BASS is a New-York based company specializing in the servicing, acquisition, and securitization of delinquent and defaulted residential mortgages. C-BASS combines advanced credit risk analysis, seasoned loss mitigation expertise, and proprietary default management technology to provide specialty servicing for sub-performing and non-performing mortgage loans. C-BASS is a limited liability company capitalized by MGIC MGIC Mortgage Guaranty Insurance Company MGIC Montana Geographic Information Council Investment Corporation (NYSE-MTG), Enhance Financial Services Group Inc. (NYSE-EFS), and C-BASS management. MGIC Investment Corporation, based in Milwaukee, Wis., is the parent of Mortgage Guaranty Insurance Corporation Mortgage Guaranty Insurance Corporation (a subsidiary of MGIC Investment Corporation) NYSE: MTG is the largest provider of private mortgage insurance in the United States. (MGIC), the nation's leading provider of private mortgage insurance. Enhance Financial Services Group Inc. provides a broad range of products and services utilizing its credit-related analytic skills. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities. |
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