Fitch Rates $990MM RASC HE Mortgage A-B P-T Certs, Series 2004-KS2.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 27, 2004 Residential Asset Securities Corporation (RASC RASC Royal Astronomical Society of Canada RASC Reconfigurable Application Specific Computing RASC Royal Army Service Corps (British) RASC Royal Agricultural Society of the Commonwealth (UK) ) series 2004-KS2 $95.0 million class A-I-1, $36.6 million class A-I-2, $44.7 million class A-I-3, $31.7 million class A-I-4, $23.0 million class A-I-5, $25.7 million class A-I-6, $292.2 million class A-II-A, $158.3 million class A-II-B1, and $134.0 million class A-II-B2 are rated 'AAA' by Fitch. The $14.5 million class M-I-1 and $49.0 million class M-II-1 are rated 'AA', the $9.4 million class M-I-2 is rated 'A', the $38.5 million class M-II-2 is rated 'A+', and the $9.4 million class M-I-3 and $28.0 million class M-II-3 are rated 'BBB' by Fitch. 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 for the 'AAA' class A-I A-I General Audiences (Catholic movie rating) certificates reflects the 11.50% subordination provided by classes M-I-1, M-I-2 and M-I-3, monthly excess interest and target overcollateralization (OC) of 2.45%. Credit enhancement for the 'AA' class M-I-1 certificates reflects the 6.50% subordination provided by classes M-I-2 and M-I-3, monthly excess interest and growing OC. Credit enhancement for the 'A' class M-I-2 certificates reflects the 3.25% subordination provided by the class M-I-3, monthly excess interest and growing OC. Credit enhancement for the 'BBB' rating on the class M-I-3 certificates reflects monthly excess interest and growing OC. Credit enhancement for the 'AAA' class A-II A-II Adults and Adolescents (Catholic movie rating) certificates reflects the 16.50% subordination provided by classes M-II-1, M-II-2 and M-II-3, monthly excess interest and target overcollateralization (OC) of 2.15%. Credit enhancement for the 'AA' class M-II-1 certificates reflects the 9.50% subordination provided by classes M-II-2 and M-II-3, monthly excess interest and growing OC. Credit enhancement for the 'A+' class M-II-2 certificates reflects the 4.00% subordination provided by the class M-II-3, monthly excess interest and growing OC. Credit enhancement for the 'BBB' rating on the class M-II-3 certificates reflects monthly excess interest and growing OC. In addition, the ratings reflect the strength of the transaction's legal and financial structures and the attributes of the mortgage collateral. The ratings also reflect the strength of the servicing capabilities represented by Residential Funding Corporation (RFC (Request For Comments) A document that describes the specifications for a recommended technology. Although the word "request" is in the title, if the specification is ratified, it becomes a standards document. ) as master servicer and Homecomings Financial Network, Inc. as primary servicer for approximately 69% and 84% of the Group I and II loans, respectively. The Group I loans consist of a pool of 2,811 fixed-rate mortgage loans with an initial aggregate principal balance of $290,000,291 secured by first and second liens A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the on one- to four-family residential properties. As of the cut-off-date, the Group I weighted average original loan-to-value ratio Loan-to-value ratio (LTV) The ratio of money borrowed on a property to the property's fair market value. (OLTV OLTV Original Loan-to-Value ratio OLTV on Line Television ) was 80.72% and the weighted average Fair, Isaac & Co. (FICO FICO See: Financing corporation ) score was 633. The average balance was $103,324 and the pool had a weighted average interest rate of 7.70%. The weighted average original term to maturity was 332 months. California (10.92%), Florida (10.08%), and Texas (7.03%) comprise the top three state concentrations. The Group II-A loans consist of 2,526 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 with an initial aggregate principal balance of $349,981,107 secured by first liens on one- to four-family residential properties. As of the cut-off-date, the Group I weighted average OLTV was 81.93% and the weighted average FICO score FICO Score A standard credit score which makes up a substantial portion of a credit report that credit bureaus sell to lenders so they can asses an applicant's credit risk and whether to extend them credit. was 618. The average balance was $138,552 and the pool had a weighted average interest rate of 7.07%. The weighted average original term to maturity was 360 months. California (14.97%), Michigan (6.75%), and Florida (6.61%) comprise the top three state concentrations. The Group II-B loans consist of 2,407 adjustable-rate mortgage loans with an initial aggregate principal balance of $350,019,215 secured by first liens on one- to four-family residential properties. As of the cut-off-date, the Group I weighted average OLTV was 81.89% and the weighted average FICO score was 618. The average balance was $145,417 and the pool had a weighted average interest rate of 7.07%. The weighted average original term to maturity was 360 months. California (19.58%), Florida (6.30%), and Michigan (6.13%) comprise the top three state concentrations. The loans were sold by RFC to RASC, the depositor. Prior to assignment to the depositor, RFC reviewed the underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards for the mortgage loans and purchased all the mortgage loans from mortgage collateral sellers who participated in or whose loans were in substantial conformity with the standards set forth in RFC's AlterNet program. The AlterNet program was established primarily for the purchase of mortgage loans made to borrowers that may have imperfect credit histories, higher debt to income ratios or mortgage loans that present certain other risks to investors. The depositor, a special purpose corporation, deposited the loans in the trust, which then issued the certificates. For federal income tax purposes, an election will be made to treat the trust as three real estate mortgage investment conduits Real Estate Mortgage Investment Conduit (REMIC) A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. (REMICs). |
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