Fitch Rates Long Beach Mortgage Loan Trust $3.38B Series 2005-1.
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 -- Long Beach Securities Corporation's asset-backed certificates, series 2005-1, which closed on Jan. 6, 2005, are rated 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. as follows:
-- $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 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 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 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 (91.13%), with principal balances that conform to Fannie Mae Fannie Mae: see Federal National Mortgage Association. 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 OLTV Original Loan-to-Value ratio
OLTV on Line Television ) 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 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. ) 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 LBMC Lattimore, Black, Morgan & Cain (professional services firm; Tennessee) ). 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 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. (REMIC).