Fitch Downgrades 1 & Affirms 9 RMBS Classes from 2 Soundview HE Loan Trust Issues.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 taken rating actions on the following Soundview Home Equity Loan Trust issues: Series 2000-1 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class B downgraded to 'BB+' from 'BBB'; Series 2003-2 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5 affirmed at 'BBB'; The mortgage loans consist of fixed- and adjustable-rate mortgages 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 extended to subprime borrowers and are secured by first and second liens, primarily on one- to four-family residential properties. As of the January 2006 distribution date, the 2000-1 and 2003-2 transactions are seasoned 67 and 25 months respectively. The pool factors (current mortgage loan principal outstanding as a percentage of the initial pool) are approximately 12% and 40% respectively. All of the loans in series 2000-1 were originated by ContiFinancial or its affiliates, and are serviced by Litton Loan Servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. (rated 'RPS1' by Fitch). The loans in series 2003-2 were originated by Impac and Residential Mortgage Assistance Enterprise, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (ResMAE), and are serviced by Impac (not rated by Fitch) and GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Mortgage Co. (rated 'RPS1', Rating Watch Evolving, by Fitch). The affirmations reflect a stable relationship between 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 and future loss expectations and affect approximately $168 million of outstanding certificates. The downgrade on the class B certificate in series 2000-1 reflects deterioration between credit enhancement and expected losses and affects approximately $2.356 million in outstanding certificates. Given the high outstanding delinquencies for the pool, Fitch does not feel that the protection offered by the overcollateralization (OC) of the transaction is sufficient to maintain the B bond at an investment grade rating. The OC is currently approximately $750,000 less than its target amount, and it is projected that this protection will continue to deteriorate. Additionally, the issue will fail its cumulative loss trigger for its remaining life, causing the transaction to pay the bonds sequentially. Fitch will continue to closely monitor these transactions. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings website 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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