Fitch Affirms $309MM & Downgrades $4.1MM from Harborview Mortgage 2006-3.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has taken rating actions on the following classes from Harborview Mortgage Loan Trust 2006-3: Series 2006-3 --Class A affirmed at 'AAA'; --Class B-1 affirmed at 'AA'; --Class B-2 affirmed at 'A'; --Class B-3 rated 'BBB'; placed on Rating Watch Negative; --Class B-4 downgraded to 'B' from 'BB'. The affirmations affect approximately $309 million in outstanding certificates and reflect adequate relationships of credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing (CE) to future loss expectations. The downgrade of class B-4 affects approximately $4.10 million of the outstanding certificates. Class B-3, placed on Rating Watch Negative, has a balance of approximately $4.96 million. The negative rating actions reflect deterioration in the relationship between CE and future loss expectations. As of the July 2007 distribution date, approximately 5.87% of the pool is more than sixty days delinquent (including loans in Foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. , Real Estate Owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most and Bankruptcy) versus a credit enhancement level of only 1.4%. The current credit enhancement for the B-3 class (placed on Rating Watch Negative) is 2.67%. The pool is seasoned 15 months and has a pool factor (current aggregate mortgage loan principal balance as a percentage of original) of approximately 73%. The collateral for the pools consist of adjustable-rate mortgage Adjustable-rate mortgage (ARM) A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or loans secured by first liens on one- to four-family residential properties. The mortgage loans were originated by Countrywide Home Loans, Inc. and is serviced by Countrywide Home Loans Servicing LP, rated 'RPS1' by Fitch. Fitch will continue to closely monitor these transactions. If credit enhancement continues to deteriorate, further rating actions may be necessary. Further information regarding delinquencies, losses and credit enhancement is available on the Fitch Rings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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