Printer Friendly

CAPSTEAD SECURITIES CORP. IV CMO SERIES 1992-XI RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 CAPSTEAD SECURITIES CORP. IV CMO SERIES 1992-XI RATED 'AAA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 30 /PRNewswire/ -- Capstead Securities Corp. IV's $351 million Collateralized Mortgage Obligations Series 1992-XI are rated 'AAA' by Fitch. The rating reflects the high quality of the underlying collateral, an adequate level of credit support, and the integrity of the legal and financial structures. Fitch also believes that the prudent underwriting standards developed by Capstead Mortgage Corp. (CMC) for acquiring mortgage loans combined with Lomas Mortgage USA, Inc.'s ability to provide dependable servicing and administration of the mortgage loans will further enhance the strength and quality of the pool.
 The collateral for the bonds will be provided by a pool of 30-year fixed-rate, first lien, one- to four-family residential mortgage loans. Approximately 48 percent of the pool consists of super jumbo loans and 47 percent are limited documentation loans. Although these characteristics may present some additional risk to the pool, the weighted average original loan-to-value (LTV) ratio of approximately 72 percent, combined with all the loans being secured by owner-occupied properties, mitigates the potential for defaults and losses. In addition, the mortgaged properties are located primarily in California (72 percent), Virginia (4 percent), Maryland (3.9 percent) and Florida (3.5 percent).
 Credit enhancement will be provided by a mortgage pool insurance policy issued by General Electric Mortgage Insurance Corp. (GEMICO) equal to 9 percent of the initial principal balance of the mortgage loans. The pool policy also contains a fraud waiver which covers losses due to borrower fraud up to specified amounts. Additionally, special hazard and bankruptcy losses will be covered by a special hazard insurance policy and a bankruptcy bond issued by Commerce and Industry Insurance Co. The bonds are special allocation bonds, whereby classes XI-IA, XI-IB, XI-IC, XI-RU and XI-RL will absorb excess credit losses in the unlikely event that coverage under the mortgage pool insurance policy is depleted. Fitch believes the pool policy will be able to provide protection for the class XI-IA, XI-IB, XI-IC, XI-RU and XI-RL bonds against credit losses, irrespective of their loss position.
 Pursuant to a Management Agreement, Capstead Advisors Inc. will act as bond manager with respect to performing certain administrative functions on behalf of the Issuer. Two separate real estate mortgage investment conduit elections will be made with respect to the trust fund for federal income tax purposes.
 -0- 7/30/92
 /CONTACT: Michele J. Loesch, 212-908-0686, or Alexander K. Zabik, 212-908-0634, both of Fitch/ CO: Capstead Securities Corp. IV ST: IN: FIN SU: RTG


PS -- NY092 -- 5226 07/30/92 15:31 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 30, 1992
Words:431
Previous Article:ABB UNIT RECEIVES $20 MILLION ORDER FROM MISSISSIPPI POWER COMPANY
Next Article:DELTA TO INCREASE FARES 5 PERCENT SEPTEMBER 1; ANNOUNCES DELTA FALL SALE FARE


Related Articles
CAPSTEAD SECURITIES IV $350 MILLION CMO SERIES 1992-I 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SECURITIES CORP. IV $125 MILLION SERIES 1992-III 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SEC. CORP. IV $200 MIL. CMO SER. 1992-VII 'AAA' BY FITCH --FITCH FINANCIAL WIRE (FFW)--
CAPSTEAD SECURITIES IV CMO SERIES 1992-V RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CORRECTION TO FITCH RATES CAPSTEAD SECURITIES IV CMO SERIES 1992-IX
CAPSTEAD SECURITIES IV CMO SERIES 1992-X RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SECURITIES CORP. IV CMO SERIES 1992-VIII RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SECURITIES CORP. IV CMO SERIES 1992-XII RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
PMI-INSURED "SUPER-SENIOR" MORTGAGE DEBT AFFIRMED, OFF FITCHALERT -- FITCH FINANCIAL WIRE --
CAPSTEAD SECURITIES CORP. SERIES 1992-XIII CLASS XIII-M OFF FITCHALERT -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters