Fitch Rates Ace Security Corp. $153.331MM Home Equity Loan Trust, Series 2005-SD2.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-SD2, as follows: -- $113,125,000 class A-1 'AAA'; -- $18,371,000 class M-1 'AA'; -- $10,636,000 class M-2 'A'; -- $5,640,000 class M-3 'BBB+'; -- $3,142,000 class M-4 'BBB'; -- $2,417,000 class M-5 '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 32.25% subordination provided by classes M-1, M-2, M-3, M-4 and M-5, initial overcollateralization (OC), and monthly excess interest. Credit enhancement for the 'AA' class M-1 certificates reflects the 20.85% subordination provided by classes M-2, M-3, M-4 and M-5, initial OC, and monthly excess interest. Credit enhancement for the 'A' class M-2 certificates reflects the 14.25% subordination provided by classes M-3, M-4 and M-5, initial OC, and monthly excess interest. Credit enhancement for the 'BBB+' class M-3 certificates reflects the 10.75% subordination provided by classes M-4 and M-5, initial OC, and monthly excess interest. Credit enhancement for the 'BBB' class M-4 certificates reflects the 8.80% subordination provided by class M-5 and initial OC and monthly excess interest. Credit enhancement for the 'BBB-' class M-5, certificates reflects the 7.30% subordination provided by initial OC and monthly excess interest. 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 loans secured by first and second liens on one- to four-family residential properties, with an aggregate principal balance of $161,146,191. As of the cut-off date, May 31, 2005, the mortgage loans had a weighted average loan-to-value ratio (LTV LTV See: Loan-to-value ratio ) of 83.55%, 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 8.363%, 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 299 months, and an average principal balance of $99,045. Single-family properties account for approximately 84.19% of the mortgage pool, two- to four-family properties 6.51%, and condos 2.65%. 93.62% of the properties are owner occupied. The four largest state concentrations are California (20.62%), Ohio (7.60%), New York (6.52%), and Florida (5.96%). 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, see the press release, "Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation," dated May 1, 2003, 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 , rated 'RSS2' by Fitch, will act as servicer for this transaction, with Wells Fargo Bank NA, rated 'RMS1,' acting as master servicer. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and 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 this site, at all times. This document will remain on the public site for seven days. |
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