Fitch Rates FHAMS $216.38MM Mtge P-T Ctfs, Series 2006-FA7.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 First Horizon Alternative Mortgage Securities Trust (FHAMS) 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 , Series 2006-FA7 as follows: --$206.72 million classes A-1 through A-9, A-PO A-PO Physical Optics Currents on an Auxiliary Plane and A-R certificates (senior certificates) 'AAA'; --$4.67 million class B-1 'AA'; --$1.95 million class B-2 'A'; --$1.41 million class B-3 'BBB'; --$0.98 million privately offered class B-4 'BB'; --$0.65 million privately offered class B-5 'B'; The 'AAA' rating on the senior certificates reflects the 4.75% subordination provided by the 2.15% Class B-1, the 0.90% Class B-2, the 0.65% Class B-3, the 0.45% privately offered Class B-4, the 0.30% privately offered Class B-5, and the 0.30% privately offered Class B-6 (not rated by Fitch). Fitch believes the above 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 will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and the servicing capabilities of First Horizon Home Loan Corporation, currently rated 'RPS2' 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. . Substantially all of the mortgage loans were underwritten to First Horizon's 'Super Expanded Underwriting Guidelines'. These guidelines are less stringent than First Horizon's general underwriting guidelines and could include limited documentation, higher loan-to-value ratios and lower FICO scores. Mortgage loans underwritten to the 'Super Expanded Underwriting Guidelines' could experience higher rates of default and losses than loans underwritten using First Horizon's general underwriting guidelines. As of the cut-off date, Oct. 1, 2006, the aggregate pool consists of conventional, fully amortizing, fixed-rate mortgage loans secured by first liens on single-family residential properties, substantially all of which have original terms to maturity of 30 years. Approximately 36.8% of the mortgage loans in the aggregate pool have interest only payments scheduled for a period of ten years following the origination date of the mortgage loan. Thereafter, monthly payments will be increased to include principal and interest payments to sufficiently amortize the loan over the remaining term. The principal balance of the aggregate pool is $217,029,800 and the average principal balance is approximately $251,775. The mortgage pool has a weighted average original loan-to-value ratio (OLTV OLTV Original Loan-to-Value ratio OLTV on Line Television ) of 68.5% and the weighted average FICO FICO See: Financing corporation is 724. Rate/Term and cash-out refinance loans account for 12.4% and 40.3% of the pool, respectively. Second homes represent 6.2% of the pool, and investor occupancies represent 24.1% of the pool. The states with the largest concentrations are California (19.0%), Arizona (7.5%), Maryland (7.4%) and Washington (7.0%). All other states represent less than 5% of the pool as of the cut-off date. 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 www.fitchratings.com. The trust, First Horizon Alternative Mortgage Securities Trust 2006-FA7, was created for the sole purpose of issuing the certificates. For federal income tax purposes, an election will be held to treat the trust as multiple 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). The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. will act as trustee. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other 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 the 'Code of Conduct' section of this site. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion