Fitch Rates Ace Security Corp. $144.4MM HE Loan Trust, Series 2005-SD1.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 Ace Security Corp. Home Equity Loan Trust, series 2005-SD1, as follows: -- $112,394,000 class A-1 'AAA'; -- $15,279,000 class M-1 'AA'; -- $7,826,000 class M-2 'A'; -- $7,081,000 class M-3 'BBB'; -- $1,863,000 class M-4 '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' class A-1 certificates reflects the 27.25% subordination provided by class M-1, M-2, M-3 and M-4, monthly excess interest and initial overcollateralization (OC). Credit enhancement for the 'AA' class M-1 certificates reflects the 17% subordination provided by class M-2, M-3 and M-4, monthly excess interest and initial OC. Credit enhancement for the 'A' class M-2 certificates reflects the 11.75% subordination provided by class M-3 and M-4, monthly excess interest and initial OC. Credit enhancement for the 'BBB' class M-3 certificates reflects the 7% subordination provided by class M-4, monthly excess interest and initial OC. Credit enhancement for the 'BBB-' class M-4 certificates reflects the 5.75% subordination provided by monthly excess interest and initial OC. In addition, the ratings on the certificates reflect 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 pool consists of fixed- 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 secured by first and second liens on one- to four-family residential properties, with an aggregate principal balance of $149,041,679. As of the cut-off date, Nov. 30, 2004, the mortgage loans had a weighted average loan-to-value ratio (LTV LTV See: Loan-to-value ratio ) of 76.36%, weighted average coupon Weighted average Coupon The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the weighting factor. (WAC WAC (Women's Army Corps), U.S. army organization created (1942) during World War II to enlist women as auxiliaries for noncombatant duty in the U.S. army. Before 1943 it was known as the Women's Auxiliary Army Corps (WAAC). Its first director was Oveta Culp Hobby. ) of 8.018%, weighted average remaining term (WAM WAM - Intermediate language for compiled Prolog, used by the Warren Abstract Machine. "An Abstract Prolog Instruction Set", D.H.D. Warren, TR 309, SRI 1983. ) of 282 months and an average principal balance of $108,394. Single-family properties account for approximately 78.09% of the mortgage pool, 2-4 family properties 8.39%, and condos 2.69%. Ninety Five percent of the properties are owner occupied. The four largest state concentrations are California (17.73%), New York (9.86%), Ohio (7.27%), and Texas (7.15%). 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', available on the Fitch Ratings web site at 'www.fitchratings.com'. Ace Securities Corp. deposited the loans into the trust, which issued the certificates, representing beneficial ownership in the trust. For federal income tax purposes, the Trust Fund will consist of multiple real estate mortgage investment conduits (REMICs). HSBC Bank USA HSBC Bank USA, N.A., the United States subsidiary of the HSBC Holdings plc, is a bank with its head office in New York City. History The Hongkong and Shanghai Banking Corporation acquired a 51% shareholding in Marine Midland Bank of New York State, headquartered in will act as trustee. Ocwen Federal Bank FSB (FrontSide Bus) See system bus. FSB - front side bus , Option One Mortgage Corporation, and Select Portfolio Servicing, Inc. will act as servicers for this transaction, with Wells Fargo Bank NA, rated 'RMS1,' acting as master servicer. |
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