Fitch Rates Terwin Mortgage Trust Asset-Backed Ctfs, Series 2006-8.

NEW YORK -- Terwin Mortgage Trust 2006-8, asset-backed securities, series 2006-8, are rated as follows by Fitch Ratings:

--$84,890,000 class II-A-1, II-A-2 and classes II-A-X and II-G (senior certificates) 'AAA';

--$21,385,000 class II-M-I 'AA';

--$2,730,000 class II-M-2 'AA-';

--$5,980,000 class II-M-3 'A';

--$2,470,000 class II-B-1 'A-';

--$2,405,000 class II-B-2 'BBB+';

--$2,275,000 class II-B-3 'BBB';

--$2,860,000 class II-B-4 'BBB-';

--$2,860,000 class II-B-5 'BB+';

--$2,145,000 class II-B-6 'BB'.

The 'AAA' rating on the senior certificates reflects the 40.35% initial credit enhancement provided by the 16.45% class II-M1, 2.10% class II-M-2, 4.60% class II-M-3, 1.90% class II-B-1, 1.85% class II-B-2, 1.75% class II-B-3, 2.20% class II-B-4, 2.20% class II-B-5, 1.65% class II-B-6, and overcollateralization. The initial overcollateralization is 0.00% and the target overcollateralization is 5.65%. All certificates have the benefit of excess interest.

The group II-A collateral pool consists of 2,661 fixed-rate, closed-end second lien mortgage loans and totals $129,041,189 as of the cut-off date. The weighted average CLTV is 99.55%. The average outstanding principal balance is $48,605, the weighted average coupon is 11.588%, and the weighted average remaining term is 331 months. The loans are geographically concentrated in California (28.46%), Florida (8.73%) and Washington (8.16%).

The group II-B collateral pool consists of 13 home equity line of credit (HELOC) mortgage loans and totals $958,927 as of the cut-off date. The weighted average CLTV is 87.92%. The average outstanding principal balance is $73,764, the weighted average coupon is 13.740%, and the weighted average remaining term is 252 months. The loans are geographically concentrated in Virginia (27.90%), Arizona (27.46%) and Florida (22.98%). The HELOC loan programs originate mortgage loans that have an initial draw period, during which the related borrower may make cash withdrawals against the related equity line. After the end of the draw period, the mortgage loans have a repayment period, during which the balance of the HELOC as of the end of the draw period is repaid.

Approximately 59.10% of the mortgage loans were originated by OwnIt Mortgage and 29.2% by Ameriquest.

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