Fitch Rates Ace Securities Home Equity Loan Trust Series 2003-HS1.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 29, 2003 Ace Securities Corp. Home Equity Loan Trust 2003-HS1 is rated by 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. as follows: -- $343.8 million class A-1, A-2A and A-2B mortgage pass-through certificates 'AAA'; -- $22.4 million class M-1 mortgage pass-through certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size 'AA'; -- $20.4 million class M-2 mortgage pass-through certificates 'A'; -- $4 million class M-3 mortgage pass-through certificates 'A-'; -- $4 million class M-4 mortgage pass-through certificates 'BBB+'; -- $2 million class M-5 mortgage pass-through certificates 'BBB'; -- $4 million class M-6 mortgage pass-through certificates 'BBB-'. 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' rated class A-1, A-2A and A-2B certificates reflects the 15.75% subordination provided by classes M-1, M-2, M-3, M-4, M-5 and M-6, monthly excess interest and target over-collateralization (OC) of 1.75%. Credit enhancement for the 'AA' rated class M-1 certificates reflects the 10.25% subordination provided by classes M-2, M-3, M-4, M-5 and M-6, monthly excess interest and initial OC. Credit enhancement for the 'A' rated class M-2 certificates reflects the 5.25% subordination provided by classes M-3, M-4, M-5 and M-6, monthly excess interest and initial OC. Credit enhancement for the 'A-' rated class M-3 certificates reflects the 4.25% subordination provided by classes M-4, M-5 and M-6, monthly excess interest and initial OC. Credit enhancement for the 'BBB+' rated class M-4 certificates reflects the 3.25% subordination provided by classes M-5 and M-6, monthly excess interest and initial OC. Credit enhancement for the 'BBB' rated class M-5 certificates reflects the 2.75% subordination provided by class M-6, monthly excess interest and initial OC. The 'BBB-' rating on the class M-6 certificates is supported by monthly excess interest and target OC. In addition, the ratings reflect the integrity of the transaction's legal structure, as well as the capabilities of Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank Minnesota, N.A. as (rated 'RMS1' by Fitch) master servicer. Murrayhill Company will act as credit risk manager and Bank One, N.A. will act as trustee. The mortgage loans have been divided into two loan groups, Group I and Group II. The Group I mortgage loans consist of fixed-rate 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 that conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" agency loan limits. The Group II mortgage loans consist of fixed-rate and adjustable-rate mortgage loans, with principal balances at origination that may or may not conform to agency loan limits. The Group I mortgage loans, as of the cut-off date (Aug. 1, 2003) consist of 2,910 mortgage loans, with an aggregate principal balance of $337,197,509. Approximately 73.87% of the mortgage loans are adjustable-rate and 26.13% are fixed-rate loans. As of the cut-off date, the weighted average loan rate is approximately 8.672%. The weighted average remaining term to maturity is 341 months. The average cut-off date principal balance of the mortgage loans is approximately $115,875. The 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 ) is 81.66%. 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. is 601. The properties are primarily located in Florida (26.13%), 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 (8.89%) and New Jersey (8.60%). The Group II mortgage loans, as of the cut-off date (Dec. 1, 2002) consist of 329 mortgage loans with an aggregate principal balance of $70,918,276. Approximately 73% of the mortgage loans are adjustable-rate and 27% are fixed-rate loans. As of the cut-off date, the weighted average loan rate is approximately 8.393%. The weighted average remaining term to maturity is 344 months. The average cut-off date principal balance of the mortgage loans is approximately $215,557. The weighted average OLTV is 82.94%. The weighted average FICO score is 614. The properties are primarily located in Florida (22.35%), New York (13.38%) and New Jersey (10.15%). For additional collateral information, go to 'Deal Tracker' on the Fitch Ratings web site at 'www.fitchratings.com'. All of the mortgage loans were purchased by Ace Securities Corp., acting as the depositor, from Deutsche Bank AG New York Branch, who previously acquired the mortgage loans from HomeStar Mortgage Services, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . The trust fund will make elections to treat some of its assets as one or more 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) for federal income tax purposes. |
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