Fitch Rates FHASI $209.7MM Mtge P-T Ctfs Series 2007-2.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 Asset Securities Inc.'s (FHASI) 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 2007-2, as follows:
--$202.7 million classes I-A-1 through I-A-7, I-A-PO, I-A-R and II-A-1 senior certificates 'AAA';
--$4.62 million class B-1 'AA';
--$1.05 million class B-2 'A';
--$630,000 class B-3 'BBB';
--$420,000 class B-4 'BB';
--$315,000 class B-5 'B'.
The class B-6 certificate is not rated by Fitch.
The 'AAA' rating on the senior certificates reflects the 3.50% subordination provided by the 2.20% class B-1, 0.50% class B-2, 0.30% class B-3, 0.20% privately offered class B-4, 0.15% privately offered class B-5 and 0.15% privately offered class B-6 certificates. The ratings on the class B-1, B-2, B-3, B-4, and B-5 certificates are based on their respective subordination.
Fitch believes the above credit enhancement Credit Enhancement
A method whereby a company attempts to improve its debt or credit worthiness.
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 In aircraft crash rescue and fire-fighting activities: fuels, materials, components, or situations that could increase the risks normally associated with military aircraft accidents and could require special procedures, equipment, or extinguishing agents. 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 (rated 'RPS2' by Fitch).
The certificates represent ownership interests in a trust fund that consists of three cross-collateralized pools of mortgages. The senior certificates whose class designation begins with I, and II correspond to Pools I, and II, respectively. Each of the senior certificates generally receives distributions based on principal and interest collected from mortgage loans in its corresponding mortgage pool. If on any distribution date a pool is under-collateralized and borrower payments from the underlying loans are insufficient to pay senior certificate principal and interest, borrower payments from the other pools that would have been distributed to the subordinate certificates will instead be distributed as principal and interest to the under-collateralized group's senior certificates. The subordinate certificates will only receive principal and /or interest distributions after all the senior certificates receive all their required principal and interest distributions.
As of the cut-off date (March 1, 2007), 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 33.94% 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 aggregate principal balance of the pool is $210,027,734 and the average principal balance is approximately $644,257. The mortgage pool has a 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 ) of 71.08% and the weighted average FICO FICO
See: Financing corporation is 750. Rate/Term and cash-out refinance loans account for 27.29% and 26.34% of the pool, respectively. Second homes represent 8.07% of the pool, and investor occupancies represent 0.44% of the pool. The states with the largest concentrations are California (22.2%), Washington (13.37%), Virginia (7.28%), Arizona (7.04%), and Maryland (6.19%). All other states represent less than 5% of the aggregate 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, see the press release 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation,' dated May 1, 2003, available on the 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. web site at www.fitchratings.com.
All of the mortgage loans were originated or acquired in accordance with First Horizon Home Loan Corporation's underwriting guidelines. The trust, First Horizon Mortgage Pass-Through Trust 2007-2, 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. The bank now continues under the new name of The Bank of New York Mellon Corporation. will act as trustee.
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