Fitch Rates $537MM RiverView HECM Trust 2007-1.
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 rates RiverView HECM HECM Home Equity Conversion Mortgage pass-through notes, series 2007 as follows:
--$537,126,317 class A notes 'AAA'.
The notes represent beneficial ownership interest in the trust. The trust consists of a mortgage pool of home equity conversion mortgages (each, a 'HECM') that are insured by the Federal Housing Administration Federal Housing Administration (FHA)
Federally sponsored agency chartered in 1934 whose stock is currently owned by savings institutions across the United States. The agency buys residential mortgages that meet certain requirements, sells these mortgages in packages, and insures (FHA See Federal Housing Administration.
See Federal Housing Administration (FHA). ) and secured by one-to-four family, first lien, residential properties with a cut-off date balance of approximately $330,000,000. The ratings on the notes reflect the credit support provided by the FHA insurance, the quality of the underlying collateral, and Fitch's level of confidence in the integrity of the legal and financial structure of the transaction.
The mortgage loans provide for periodic credit line draws by the borrower, to be funded by a Funding Account comprised of cash and securities in the amount of $207,126,317. The loans and the amounts on deposit in the Funding Account comprise the total collateral pool with an aggregate principal balance of $537,126,317. No interest or principal is due on the loans until the occurrence of a Maturity Event, at which time the borrower has moved, passed away, sold the home or voluntarily prepaid the loan in full. It is anticipated that Maturity Events will occur with a frequency and regularity sufficient to generate enough funds to pay interest and principal on the notes.
As of the cut-off date, May 23, 2007, the mortgage loans had a weighted average current loan-to-value ratio Loan-to-value ratio (LTV)
The ratio of money borrowed on a property to the property's fair market value. (LTV LTV
See: Loan-to-value ratio ) of 48.58%, and an average outstanding current principal balance of $93,326. Single-family properties account for 84.87% of the mortgage pool, 2-4 family properties 2.26%, and condos 10.05%. As required by the terms of the mortgage loans, 100% of the properties are owner occupied. In addition, the weighted average age of the borrowers is approximately 74 years. The three largest state concentrations are Florida (19.45%), California (14.88%), and New York (7.04%).
None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation' and Feb. 23, 2005 entitled 'Fitch Revises RMBS RMBS Residential Mortgage-Backed Securities
RMBS Rambus, Inc. (NASDAQ stock symbol)
RMBS Russian Mortgage-Backed Securities Guidelines for Antipredatory Lending Laws', available on the Fitch Ratings web site at www.fitchratings.com.
The mortgage loans, originated by Financial Freedom Senior Funding Corporation, were deposited into the trust by Greenwich Capital Acceptance Inc. Wells Fargo Bank, N.A. will act as Indenture Trustee, with Wilmington Trust Company acting as Owner Trustee. Financial Freedom Senior Funding Corporation (rated 'RPS3+') will service the loans.
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.