Fitch Affirms 10 Classes from 2 EMC Mortgage Loan Trusts.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 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. has affirmed the following classes from EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Mortgage Loan Trusts: Series 2002-B --Class A-1 and A-2 affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class B affirmed at 'BBB'. Series 2003-A --Class A-1 and A-2 affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class B affirmed at 'BBB'. The mortgage loans for both aforementioned transactions consist of fixed-rate and adjustable-rate, first or 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 , fully amortizing, negatively amortizing, or balloon payment mortgage A balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity.[1] The final payment is called a balloon payment because of its large size. loans. With the exception of a limited number of multifamily properties, substantially all of the mortgage loans are secured by one- to four-family residential properties. Both transactions include mortgage loans that are performing under the terms of a bankruptcy or forbearance plan or mortgage loans which were performing or re-performing under the terms of the related original notes or such notes as formally modified. The affirmations affect approximately $92.8 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 overcollateralization (OC) of both transactions has been near or at the target amount for the past 12 months, and the excess spread has generally been able to cover most losses to the trusts. However, loss expectations have exceeded Fitch's original expectations and excess spread has been steadily declining. Given this trend, Fitch will closely monitor the relationship between excess spread and losses in the coming months. If the losses regularly exceed excess spread and the OC cannot maintain the target amount, the ratings may be reassessed. The master servicer for this transaction, EMC Mortgage Corp., is a wholly-owned subsidiary of The Bear Stearns Companies Inc. and is rated 'RPS1' for prime, Alt-A, and subprime products by Fitch. EMC is also rated 'RSS1' as a special servicer by Fitch. 'RPS1' and 'RSS1' are the highest ratings available from Fitch. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings 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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