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RESOLUTION TRUST CORP.'S MORTGAGE PASS-THROUGH SERIES 1992-16 RATED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 24 ~PRNewswire~ -- Resolution Trust Corp.'s Mortgage Pass-Through Certificates, Series 1992-16, are rated by Fitch as follows: $899.3 million classes A-2 through A-6 are rated 'AAA', $72.5 million classes B-2 through B-6 certificates are rated 'AA', $12.5 million class A-1 is rated 'AA-', and $44.4 million classes C-2 through C-6 are rated 'A'.
 The 'AAA' rating reflects the credit enhancement provided to classes A-2 through A-6 by two reserve funds and the additional credit enhancement provided by the subordination of classes B-2 through B-6 and C-2 through C-6 certificates. Reserve fund I will initially equal 7.25 percent of the aggregate principal balance of mortgage loan groups 1 through 3 (classes A-1, A-2, B-2, C-2, A-3, B-3 and C-3). Reserve fund II will initially equal 9.25 percent of the aggregate principal balance of mortgage loans groups 4 through 6 (classes A-4, B-4, C-4, A-5, B-5, C-5, A-6, B-6 and C-6).
 The 'AA' rating on classes B-2 through B-6 reflects support provided by the reserve funds as well as additional credit enhancement provided by the subordination of classes C-2 through C-6 certificates. The 'A' rating on classes C-2 through C-6 primarily reflects the credit enhancement provided by the two reserve funds, with the reserve fund in the case of loan group 1 being adequate to rate class A-1 an 'AA-'. Each of the ratings also reflect Fitch's confidence in the integrity of the legal and financial structure as well as the servicing capabilities of National Mortgage Co.
 Mortgage loan groups 1 through 3 consist of conventional, one- to four-family, residential fixed-rate mortgage loans. The mortgage loans are predominantly concentrated in California (98 percent), with the majority of the properties located in southern California. The weighted average loan-to-value (LTV) ratio is approximately 76.5 percent, and 26.1 percent of the pool has LTVs greater than 80 percent. As of the cut-off date, the 30- to 59-day delinquencies were approximately 4.8 percent and the 60- to 89-day delinquencies 1.6 percent. The mortgage loans are seasoned, on average, 4 years.
 Mortgage loan groups 4 through 6 are comprised of conventional, one- to four-family, residential adjustable rate mortgage loans (indexed primarily to U.S. Treasury securities and the 11th District Cost of Funds index). The loans are located primarily in California (87.8 percent), with large concentrations in southern California. The weighted average LTV is approximately 79.6 percent, and 38.9 percent of the mortgage loans have LTVs greater than 80 percent. The mortgage loans are seasoned, on average, 4 years with 30- to 59-day delinquencies approximately 6 percent, and 60- to 89-day delinquencies 1.9 percent.
 The mortgage loans were acquired by the RTC acting as conservator of HomeFed Bank, F.S.B. Homefed was the originator or purchaser of all the mortgage loans. On July 6, 1992 the Director of the Office of Thrift Supervision appointed the RTC as receiver for HomeFed and authorized and directed the issuance of a charter for a new federal savings association HomeFed, F.A. On the same date Homefed F.A. purchased substantially all the assets of HomeFed and agreed to assume certain liabilities and obligations of HomeFed.
 Subsequently, the mortgage loans have been sold and assigned to the trust which issued the certificates. National Mortgage Company will act as servicer. An election will be made to treat the trust fund as a real estate mortgage investment conduit for federal income tax purposes.
 -0- 11~24~92
 ~CONTACT: Jill M. Guido, 212-908-0682 or Alexander K. Zabik, 212-908-0634, both of Fitch.~


CO: Resolution Trust Corp. ST: New York IN: FIN SU: RTG

LR -- NY047 -- 1073 11~24~92 12:55 EST
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Publication:PR Newswire
Date:Nov 24, 1992
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