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FUND AMERICA INVESTORS CORPORATION II $50,510,000 MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1993-I RATED BY DUFF & PHELPS

 NEW YORK, Dec. 10 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has rated the following classes of Mortgage Pass-Through Certificates, Series 1993-I issued by Fund America Investors Corporation II and underwritten by Donaldson, Lufkin and Jenrette:
 Class Amount Rate D&P Rating
 F $50,500,000 1-Month LIBOR + 2% `AAA`(Cash Flow)
 B $ 10,000 none `AAA`(Cash Flow)
 Class F and Class B are entitled to monthly payments on the collateral described below less fees of the trust. The payments are allocated first to Class F to pay, in order: interest on the class, any deferred interest on the class, interest on any deferred interest, and then to pay down principal on the class. Notwithstanding this allocation of payments to Class F, Class B is specifically entitled to the last $10,000 of principal to be paid out on a specific piece of collateral, the Fannie Mae Stripped Mortgage-Backed Security Trust 250 Class 1 (the principal only class). After Class F has been retired, Class B will receive all subsequent cash flows from the collateral. Class B certificateholders may also terminate the trust on any payment date on or after which the principal balance of the Class F certificates falls below $5,050,000, in which case the Class F certificateholders must be paid their outstanding principal amount plus any accrued and unpaid interest with interest on any deferred amounts.
 The rating of the certificates reflects Duff & Phelps' opinion that the Class F certificateholders will receive at least $50,500,000 of payments by the Class F maturity date and the Class B certificateholders will receive at least $10,000 of payments by the Class B maturity date. The rating does not address either the right of certificateholders to receive payments on the certificates in excess of an amount equal to the aggregate principal amount of the certificates or whether certificateholders will suffer lower than anticipated yields. In addition, the ratings do not address whether the payments on the certificates will take the form of either principal or interest nor whether Class B certificateholders will recover their initial investments.
 The certificates were issued pursuant to a pooling agreement dated as of Nov. 25, 1993, between Fund America Investors Corporation II, as depositor, and State Street Bank and Trust, as trustee. The certificates are secured by collateral consisting of 6 different classes of REMIC and stripped mortgage-backed securities issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Association (Freddie Mac). The securities consist of variations of principal only, interest only, inverse floating rate, and super floating rate securities.
 The analysis for the ratings primarily focused on prepayments of the mortgage pools underlying the REMIC securities and the subsequent effect on certificate cash flows.
 -0- 12/10/93
 /CONTACT: Henry W. Hayssen of Duff & Phelps Credit Rating Co., 212-908-0209/


CO: Fund America Investors Corporation II ST: IN: FIN SU: RTG

WB -- NY079 -- 2748 12/10/93 15:58 EST
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Publication:PR Newswire
Date:Dec 10, 1993
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