Fitch Affirms 1 & Downgrades 1 Class from MESA Trust 2001-2.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 MESA Trust 2001-2 asset- backed certificates: -- Class M affirmed at 'BBB'; -- Class B downgraded to 'CCC' from to 'B+'. The collateral of the trust consists primarily of one- to four-family, fixed- and adjustable-rate, first lien and second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the mortgage loans. All of the mortgage loans were acquired or originated by Option One Mortgage Corporation and subsequently purchased by Bear, Stearns & Co. Inc. Substantially all of the Mortgage Loans have certain appraisal, document, fraud or misrepresentation misrepresentation In law, any false or misleading expression of fact, usually with the intent to deceive or defraud. It most commonly occurs in insurance and real-estate contracts. False advertising may also constitute misrepresentation. , or other deficiencies or exceptions that exceed the scope of Option One Mortgage Corporation's usual underwriting guidelines. The affirmation of Class M reflects 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 and affects approximately $2 million of outstanding certificates. The negative rating action of Class B reflects the deterioration in the relationship of CE to future loss expectations and affects approximately $763,000 of outstanding certificates. The trust has had several months in the past year in which the overcollateralization (OC) percentage declined. In August 2005 and February 2006, the OC declined nearly 3% from the previous month. Currently, only 39% of the pool is non-delinquent and the OC amount is approximately $300,000. Option One (rated 'RPS1' by Fitch) is the master servicer for the mortgage loans. Option One is a wholly-owned subsidiary of Block Financial, which is in turn a wholly-owned subsidiary of H&R Block, Inc. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. 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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