Fitch Takes Various Rating Actions on 16 RALI RMBS Securitizations.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 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. has taken action on the following Residential Accredit To give official authorization or status. To recognize as having sufficient academic standards to qualify graduates for higher education or for professional practice. In International Law: Loan, Inc. (RALI) mortgage-pass through certificates: Series 2001-QS18 --Class A affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. at 'AAA'; --Class M-1 affirmed at 'AAA'; --Class M-2 upgraded to 'AA+' from 'AA'; --Class M-3 upgraded to 'A' from 'BBB'; --Class B-1 affirmed at 'BB'; --Class B-2 downgraded to 'CCC' from 'B' and assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a distressed recovery (DR) rating of 'DR2'. Series 2003-QS5 --Class A affirmed at 'AAA' --Class M-1 affirmed at 'AA+'; --Class M-2 affirmed at 'A+'; --Class M-3 affirmed at 'BBB'; --Class B-1 affirmed at 'BB'; --Class B-2 downgraded to 'CCC' from 'B' and assigned a DR rating of 'DR2'. Series 2005-QS4 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 downgraded to 'B+' from 'BB'; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR4'. Series 2005-QS8 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 affirmed at 'BB'; --Class B-2 affirmed at 'B'. Series 2005-QS14 Group I --Class IA affirmed at 'AAA'; --Class IM- im- a prefix, replacing in- before words beginning b, m, and p. im- 1 pref. Variant of in-1. 1 affirmed at 'AA'; --Class IM-2 affirmed at 'A'; --Class IM-3 affirmed at 'BBB'; --Class IB-1 is rated 'BB' and placed on Rating Watch Negative; --Class IB-2 downgraded to 'CC' from 'B' and assigned a DR rating of 'DR3'. Series 2005-QS14 Group II --Class IIA (1) (Information Industry Association, Washington, DC) In 1999, IIA merged with SPA (Software Publishers Association) to become the Software & Information Industry Association. See SIIA. affirmed at 'AAA'; Series 2005-QS15 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 is rated 'BB' and placed on Rating Watch Negative; --Class B-2 is rated 'B' and placed on Rating Watch Negative. Series 2005-QS16 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 is rated 'BB' and placed on Rating Watch Negative; --Class B-2 is rated 'B' and placed on Rating Watch Negative. Series 2006-QS1 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 is rated 'BB' and placed on Rating Watch Negative; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. Series 2006-QS2 Group I --Class IA affirmed at 'AAA'; --Class IM-1 affirmed at 'AA'; --Class IM-2 affirmed at 'A'; --Class IM-3 affirmed at 'BBB'; --Class IB-1 is rated 'BB' and placed on Rating Watch Negative; --Class IB-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. Series 2006-QS2 Group II --Class IIA affirmed at 'AAA'; --Class IIM-1 affirmed at 'AA'; --Class IIM-2 affirmed at 'A'; --Class IIM-3 affirmed at 'BBB'; --Class IIB-1 affirmed at 'BB'; --Class IIB-2 affirmed at 'B'. Series 2006-QS3 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 is rated 'BBB' and placed on Rating Watch Negative; --Class B-1 downgraded to 'BB-' from 'BB'; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. Series 2006-QS4 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 is rated 'BBB' and placed on Rating Watch Negative; --Class B-1 downgraded to 'BB-' from 'BB'; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. Series 2006-QS5 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 is rated 'BB' and placed on Rating Watch Negative; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. Series 2006-QS6 Group I --Class IA affirmed at 'AAA'; --Class IM-1 affirmed at 'AA'; --Class IM-2 affirmed at 'A'; --Class IM-3 affirmed at 'BBB'; --Class IB-1 is rated 'BB' and placed on Rating Watch Negative; --Class IB-2 is rated 'B' and placed on Rating Watch Negative. Series 2006-QS6 Group II --Class IIA affirmed at 'AAA'; --Class IIM-1 affirmed at 'AA'; --Class IIM-2 affirmed at 'A'; --Class IIM-3 affirmed at 'BBB'; --Class IIB-1 affirmed at 'BB'; --Class IIB-2 affirmed at 'B'. Series 2006-QS7 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 is rated 'BB' and placed on Rating Watch Negative; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. Series 2006-QS8 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 affirmed at 'BBB'; --Class B-1 is rated 'BB' and placed on Rating Watch Negative; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. Series 2006-QS9 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A'; --Class M-3 is rated 'BBB' and placed on Rating Watch Negative; --Class B-1 downgraded to 'B+' from 'BB'; --Class B-2 downgraded to 'C' from 'B' and assigned a DR rating of 'DR5'. The affirmations, affecting approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.7 billion of the outstanding certificates, reflect a stable relationship between credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: 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 (CE) and expected loss. The upgrades, affecting approximately $4.1 million of the outstanding certificates, reflect an improving relationship between CE and expected loss. The downgrades, affecting approximately $36.1 million, reflect a deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: relationship between CE and expected losses. The Rating Watch Negative affects approximately $41.3 million of the outstanding certificates. The negative rating actions on the 2005 and 2006 vintage
Vintage, in wine-making, is the process of picking grapes and creating the finished product. A vintage wine is one made from grapes that were all, or primarily, grown in a single specified year. RALI transactions are because of current trends in the relationship between serious delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. (DQ) and credit enhancement. The 90+ DQ (including loans in bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most , foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. , and REO reo Noun NZ a language [Maori] ) for transactions with negative rating actions ranges from 0.79% (series 2005-QS14 Pool 1) to 3.58% (series 2006-QS3) of the current collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although balance. Series 2001-QS18, class B-2 is downgraded because of high delinquencies and losses. To date, the transaction has experienced losses of approximately $1.2 million or 0.33% of the original collateral balance. The 90+ DQ (including loans in bankruptcy, foreclosure, and REO) is 4.86% of the current collateral balance, while the current CE for the B-2 bond is 0.50%. Series 2003-QS5, class B-2 is also downgraded because of high delinquencies and losses. The 90+ DQ (including loans in bankruptcy, foreclosure, and REO) is 0.58% of the current collateral balance. To date, the transaction has experienced losses of approximately $223,000 or 0.09% of the original collateral balance. Losses have deteriorated the CE for the B-2 bond from 0.15% at issuance to 0.12% currently. The collateral of the above transactions primarily consists of 30-year and 15-year fixed-rate mortgage loans extended to Alt-A An Alt-A mortgage is a type of U.S. mortgage that, for various reasons, is considered riskier than "prime" and less risky than "subprime," the riskiest category. Alt-A interest rates, which are determined by credit risk, therefore tend to be between that of prime and subprime home borrowers. The loans are primarily secured by first liens on one- to four-family residential properties. All of the above transactions are master serviced by GMAC-RFC GMAC-RFC (Residential Funding Corporation) is the mortgage side of the GMAC business, in essence providing funding for residential real estate. Founded in 1982 in the US. It's Corporate headquarters are in Minneapolis, Minnesota. , (rated 'RMS1' by Fitch fitch: see polecat. ). As of the April 2007 distribution date, the pool factors (current principal balance as a percentage of original) of the above transactions range from 7% (series 2001-QS18) to 86% (series 2006-QS8 & 2006-QS9). The seasoning ranges from 9 months (series 2006-QS8 & 2006-QS9) to 64 months (series 2001-QS18). Fitch will continue to monitor the above transactions. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.com. 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 criteria (krītēr´ē  ),n. 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. |
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