Fitch Rates SARM Trust $655.7MM Mtge P-T Ctfs, Series 2006-7.NEW YORK -- Fitch rates Structured Adjustable Rate Mortgage This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. Loan Trust's (SARM SARM Saskatchewan Association of Rural Municipalities SARM Selective Androgen Receptor Modulator SARM Department for Standardization, Metrology and Certification (Armenia) SARM Set Asynchronous Response Mode (HDLC) ) $655.7 million mortgage pass-through certificates, series 2006-7, which closed July 31, 2006, as follows: --$620.5 million classes 1-A1, 1-A2, 2-A1, 2-A2, 3-A1, 3-A2, 3-AF, 3-AS, 4-A1, 4-A2, 4-AX and R 'AAA'; --$15 million class B1-I and B1-II 'AA'; --$6.7 million classes B2-I and B2-II 'A'; --$5.1 million class B3-I and B3-II 'BBB'; --$3.3 million classes B4-I and B4-II 'BB'; --$2.8 million class B5-I and B5-II 'B'. The 'AAA' rating on the group 1 senior certificates reflects the 5.50% total credit enhancement provided by the group 1 subordinate bonds. The 'AAA' rating on the group 2 senior certificates reflects the 5.25% enhancement provided by the group 2 subordinate bonds. Fitch believes that the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the master servicing capabilities of Aurora Loan Services, Inc., which is rated 'RMS1-' by Fitch. The aggregate trust consists of 1,365 adjustable-rate, conventional, first lien residential mortgage loans, substantially all of which have original terms to stated maturity of 30 years. As of the cut-off date (July 1, 2006), the mortgages have an aggregate principal balance of approximately $ 966,755. The group 1 mortgage pool has a weighted average original loan-to-value ratio (OLTV OLTV Original Loan-to-Value ratio OLTV on Line Television ) of 74.20%, a 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 6.482%, and a 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 357. The group 2 mortgage pool has a weighted average OLTV ratio of 73.10%, a WAC of 6.785%, and a WAM of 359. 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' at www.fitchratings.com. The mortgage loans were originated by various originators or acquired by various originators or their correspondents in accordance with such originator's respective underwriting standards and guidelines. The largest percentages of originations (as a percentage of the cut-off date balance) were those made by Lehman Brothers Bank, FSB (41.30% of the mortgage pool) and Countrywide Home Loans, Inc. (37.83% of the mortgage pool). SASCO SASCO ST (Singapore Technologies) Aviation Services Co. SASCO South African Students Congress SASCO Sudanese Aeronautical Services Co. Ltd , a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits (REMICs). 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