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FITCH AFFIRMS RESOLUTION TRUST CORP. SERIES 1991-9 RATINGS -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 29 /PRNewswire/ -- Resolution Trust Corp.'s initial $196.3 million "AAA" Class A and $15.3 million "AA" Class B mortgage pass-through certificates, series 1991-9, are affirmed by Fitch. Despite the transaction's extremely high delinquencies and foreclosures, Fitch expects losses to be well below "AAA" or "AA" requirements. The high delinquencies and foreclosures stem from borrower profiles, the pool's 100 percent California concentration, and two servicing transfers and procedures.
 The mortgage loans were all originated or acquired by Guardian Savings and Loan Association. The borrowers typically have relatively poor credit histories leading to higher than average delinquencies and defaults. However, losses will be mitigated by the low weighted average original loan-to-value ratio (LTV) of 66 percent.
 The Class A certificates are enhanced by the subordination of the $15.3 million Class B certificates as well as the $17.4 million reserve fund. The Class B certificates represent 8.6 percent of the current pool balance while the reserve fund represents 9.8 percent. The "AA" rated Class B certificates are supported by the reserve fund.
 The Resolution Trust Corp. contracted with Mortgage Risk Assessment Corp. (MRAC) to update property values in the pool to current levels. MRAC provides price indices for most major metropolitan areas by zip code. The indices measure the average change in prices of similar properties purchased at the same time and sold recently. Using these indices, current property values for all remaining mortgage loans in the pool were estimated.
 There are approximately 1,400 mortgage loans currently outstanding with an original LTV of 66.4 percent. A current LTV was calculated for each loan by dividing the current loan balance by the estimated current value. The weighted average current LTV for the pool is 70.3 percent. The 4 percent average increase in LTV is primarily a result of property value declines in Southern California, where 61.4 percent of the secured properties are located.
 Fitch analyzed losses on the pool incorporating the 4 percent decline in property values as estimated by MRAC plus an additional 5 percent which represents Fitch's moderate near-term outlook for Southern California.
 Fitch then assumed that 100 percent of the loans delinquent 90 days or more enter foreclosure, while only 80 percent of the 60-day delinquencies and 60 percent of the 30-day delinquencies default. These percentages reflect Fitch's view of delinquency cure rates given the California market and the borrowers' credit profiles. Overall, with 44 percent of the pool in default, estimated losses of only approximately $3.4 million or 2 percent of the current pool balance were incurred. In addition, the $17.4 million reserve fund, which is in the first loss position, offers five times loss coverage. This coverage is adequate to maintain both the "AA" rating on the Class B certificates as well as the "AAA" rating on the Class A certificates.
 Servicing transfers and conventional servicing procedures have also contributed to the higher than expected delinquencies. The loans have recently been transferred permanently to Ryland Mortgage Co.'s Florida office. In conjunction with the transfer, a number of steps have been taken to ensure that servicing procedures reflect the credit quality of the borrowers. In addition, Fitch expects overall delinquencies to stabilize and eventually decline as Ryland continues to work with the borrowers.
 Fitch continues to work with the Resolution Trust Corp. as well as Ryland to monitor the situation.
 -0- 1/20/93
 /CONTACT: Mary Sue Lundy, 212-908-0526, or Gregory Raab, 212-908-0536, both of Fitch/


CO: Resolution Trust Corp. ST: California IN: FIN SU: RTG

GK -- NY020 -- 0650 01/29/93 09:58 EST
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Date:Jan 29, 1993
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