Fitch Downgrades 1 and Affirms 3 Classes of IndyMac ABS HE 2000-C.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 and taken rating actions on the following IndyMac ABS (Automatic Backup System) See backup program. , Inc. Home Equity issue: Series SPMD SPMD - single processor/multiple data 2000-C Group 2: -- Class AV-1 affirmed at 'AAA'; -- Class MV-1 affirmed at 'AA'; -- Class MV-2 affirmed at 'BBB'; -- Class BV downgraded to 'CCC' from 'B'; The affirmations reflect 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 consistent with future loss expectations and affect $36,792,633 of outstanding certificates. The negative rating action is the result of poor collateral performance and the deterioration of asset quality beyond original expectations, and affects $3,375,000 of outstanding certificates. Series SPMD 2000-C Group 2 contained 9.51% Manufactured Housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected (MH) collateral at closing (Nov. 21, 2000), and as of December 2004, this figure has increased to 25.3%. To date, the MH loans have exhibited very high loss severities, causing Fitch to have concerns regarding the adequacy of enhancement in this deal. MH has been responsible for 55% of cumulative losses. As of the December 2004 distribution, Series 2000-C Group 2, with 15% of the original collateral remaining, has $774,340 of overcollateralization (OC) compared to the OC target of $2.025 million. Monthly excess spread is not keeping pace with monthly collateral losses (e.g., only $152,647 of last month's excess spread was available to cover the gross losses of $303,093). Monthly gross losses are generally increasing, as evidenced by the 12-month average gross loss figure of $289,734 versus the six-month average gross loss figure of $344,272. The Group 1 and Group 2 mortgage pools within the SPMD 2000-C transaction are not cross-collateralized, so excess spread generated within Group 1 is not available to offset losses in Group 2, and vice versa VICE VERSA. On the contrary; on opposite sides. . However, the deal was structured with mortgage insurance (MI). Currently, approximately 90.03% of the mortgage pool in Group 2 has MI down to 60% loan to value, which has served to somewhat mitigate the overall loss numbers. Fitch will continue to closely monitor this deal. Further information regarding delinquencies, losses and credit enhancement is available on the Fitch ratings web site at 'www.fitchratings.com'. |
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