Fitch Rates $537MM RiverView HECM Trust 2007-1.
--$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 (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 (LTV) 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 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.