Fitch Rates Long Beach Mortgage Loan Trust $3.38B Series 2005-1.
-- $2.807 billion classes I-A1, II-A1, II-A2, II-A3 'AAA';
-- $159.25 million class M-1 'AA+';
-- $99.75 million class M-2 'AA';
-- $61.25 million class M-3 'AA-';
-- $61.25 million class M-4 'A+';
-- $43.75 million class M-5 'A';
-- $42 million class M-6 'A-';
-- $35 million class M-7 'BBB+';
-- $35 million class M-8 'BBB';
-- $35 million class M-9 'BBB-',
-- $35 million class B-1 'BB+'
-- $24.50 million class B-2 'not rated'.
The 'AAA' rating on the senior certificates reflects the 19.80% credit enhancement provided by the 4.55% class M-1, 2.85% class M-2, 1.75% class M-3, 1.75% class M-4, 1.25% class M-5, 1.20% class M-6, 1% class M-7, 1% class M-8, 1% class M-9, 1% class B-1 and 0.70% unrated class B-2, as well as 1.75% over-collateralization (OC). Additionally, all classes have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Long Beach Mortgage Company's servicing capabilities as master servicer.
Group I consists of first lien, fixed-rate (8.87%) and adjustable-rate mortgage loans (91.13%), with principal balances that conform to Fannie Mae and Freddie Mac guidelines. Approximately 17.60% of the loans are interest only for the initial two, three or five years following origination. The Group I mortgage loans had a cut-off date pool balance of $2,384,632,512.69. As of the cut-off date, Group I loans had a weighted average original loan-to-value ratio (OLTV) of 80.84%. Cash-out refinance loans accounted for approximately 39.11% of the Group I loans, condominiums accounted for approximately 7.61%, and second homes accounted for approximately 0.78%. The weighted average coupon (WAC) for the Group I loans was 7.181%. The average loan balance was $158,923 and the weighted average FICO score for the Group I Loans was 630. The states that represent the largest portion of the Group I mortgage loans were California (31.55%), Illinois (7.54%), Florida (7.08%) and Texas (6.28%).
Group II consists of first lien fixed-rate (4.59%) and adjustable-rate mortgage loans (95.41%), with principal balances that may or may not conform to Fannie Mae or Freddie Mac guidelines. Approximately 30.21% of the loans are interest only for the initial two, three or five years following origination. The Group II mortgage loans had a cut-off date pool balance of $1,115,368,758.86. As of the cut-off date, Group II loans had a weighted average OLTV of 80.43%. Cash-out refinance loans accounted for approximately 43.02% of the Group II loans, condominiums accounted for approximately 4.42%, and second homes accounted for approximately 1.61%. The WAC for the Group II Loans was 6.846%. The average loan balance was $467,856 and the weighted average FICO score for the Group II Loans was 634. The states that represent the largest portion of the Group II mortgage loans were California (60.94%), New York (4.20%), Florida (3.60%) and Illinois (3.04%).
All of the mortgage loans were originated by Long Beach Mortgage Company (LBMC). Long Beach Securities Corporation, a subsidiary of LBMC, deposited the loans into the trust, which issued the certificates. For federal income tax purposes, one or more elections will be made to treat the trust fund as a real estate mortgage investment conduit (REMIC).
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|Date:||Jan 12, 2005|
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