Fitch Downgrades 2 Classes from First Franklin 2001-FF2 & Places 1 Class on Rating Watch Negative.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 takes rating actions on the following First Franklin Financial Corporation residential mortgage-backed certificates: Series 2001-FF2 --Classes A-1 and A-2 affirmed at 'AAA'; --Class M-1 rated 'AA' is placed on Rating Watch Negative; --Class M-2 downgraded to 'BBB-' from 'A-'; --Class M-3 downgraded to 'BB-' from 'BBB-'. The affirmations, affecting approximately $18.6 million of the outstanding certificates, are taken as a result of 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 expected loss. The Rating Watch Negative status affects approximately $4.2 million on the outstanding certificates. The downgrades, affecting approximately $3.2 million of the outstanding certificates, are taken as a result of a deteriorating relationship between credit enhancement and expected loss. Since Fitch last took rating action on series 2001-FF2 in May 2006, monthly losses have exceeded excess spread 5 times and continue to deplete de·plete v. 1. To use up something, such as a nutrient. 2. To empty something out, as the body of electrolytes. the overcollateralization (OC). As of the November 2006 distribution date, the OC is missing its $1,056,775 target by $372,813. The cumulative loss as a percentage of the original pool balance is 1.30% and the delinquency rate (including 60+, bankruptcy foreclosure, and REO reo Noun NZ a language [Maori] ) as a percentage of the current pool balance is 27.3%. The pool is 60 months seasoned and has a pool factor of 6%. As the transaction continues to season, losses are expected to increase relative to excess spread and the OC is expected to continue to decline. The collateral of the above transaction consists of subprime, fixed-rate mortgage loans (FRMs) and 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 (ARMs). In addition, the certificates are supported by two collateral groups, one consists of loans with principal balances that conform to Fannie Mae Fannie Mae: see Federal National Mortgage Association. and Freddie Mac guidelines and the other consists of loans with principal balances that may or may not conform to Fannie Mae and Freddie Mac guidelines. The loans were originated or acquired by First Franklin Financial Corp. and are serviced by Option One Mortgage Corp., which is rated 'RPS1' by Fitch. Further information regarding current delinquencies, losses and credit enhancement 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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