Centex $400MM Home Equity Ln A-B Ctfs Ser 2000-C Rated By Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 15, 2000

Centex's $400 million home equity loan asset-backed certificates, series 2000-C classes A-1 through A-7 are rated 'AAA' by Fitch.

Credit enhancement for the 'AAA' classes A-1 through A-7 certificates reflects the certificate insurance policies issued by MBIA Insurance Corp., whose insurer financial strength is rated `AAA' by Fitch, monthly excess interest and overcollateralization, which is created by the application of excess interest to pay down the classes A-1 through A-7 certificates. Fitch's analysis indicates that the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the strength of the transaction's legal and financial structures, the attributes of the mortgage collateral and the strength of the servicing capabilities represented by Centex Home Equity Corporation (CHEC) as servicer.

MBIA Insurance Corp. will issue two certificate guaranty insurance policies, one for the Group I certificates and one for the Group II certificates. The Group I certificates will be classes A-1 through A-6. The Group II certificates will be class A-7. Distributions on each Group will be primarily derived from payments on the loans from each respective Group. Each Group will constitute a separate sub-trust. In certain limited circumstances, certain amounts received on the mortgage loans in one Group may be available to pay interest and principal due on the Class A Certificates related to the other mortgage Group.

As of the statistical calculation date, Group I consists of 4,291 fixed-rate home equity loans creating a first or second lien on residential properties. The mortgage loans in the pool have an average outstanding principal balance of $61,029; a weighted average original combined loan-to-value ratio of 79.54%; a weighted average coupon of 11.88% and a weighted average remaining term of approximately 304 months. Loans originated under a stated or limited documentation program account for approximately 11.12% of the pool, and investment properties account for approximately 3.32% of the pool. The three states that represent the largest portion of mortgage loans are Texas (15.63%), North Carolina (5.61%) and Florida (5.41%).

As of the statistical calculation date, Group II consists of 795 adjustable-rate home equity loans creating a first lien on residential properties. The loans bear interest at rates that adjust semi-annually based on six-month LIBOR and an applicable gross margin. The initial rate adjustment is either six months or two years after the date of origination of the related home equity loan. The loans in the pool have an average outstanding principal balance of $98,641; a weighted average original loan-to-value ratio of 82.83%; a weighted average coupon of 11.34% and a weighted average remaining term of approximately 359 months. Loans originated under a stated or limited documentation program account for approximately 14.38% of the pool, and investment properties account for approximately 1.27% of the pool. The three states that represent the largest portion of mortgage loans are California (15.76%), Ohio (10.60%) and Arizona (8.13%).

All of the mortgage loans were originated by CHEC, by an affiliate of CHEC or by a broker for simultaneous assignment to CHEC or were acquired by CHEC from correspondent lenders and re-underwritten to comply with CHEC's underwriting standards.

CHEC Funding, LLC deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, an election will be made to treat the trust fund as two real estate mortgage investment conduits (REMICS).

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide.