RESOLUTION TRUST SERIES 1992-5 RATED 'AAA/AA' BY FITCH -- FITCH FINANCIAL WIRE --
RESOLUTION TRUST SERIES 1992-5 RATED 'AAA/AA' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, March 25 /PRNewswire/ -- The Resolution Trust Corp.'s (RTC) $418.8 million mortgage pass-through certificates, Series 1992-5 Classes A-1 through A-4 and Class A-6, are rated 'AAA' by Fitch. The $25.6 million Class A-5 and Class A-7, $67.9 million Class B and $149.8 million Class C certificates are rated 'AA.' The 'AA' rating reflects the more than adequate loss protection provided by a 12 percent reserve fund, while the 'AAA' rating reflects the reserve fund and additional credit enhancement provided to the Class A-1 through A-4 and Class A-6 certificates by subordination of Classes A-5 and A-7. The ratings also reflect Fitch's confidence in the integrity of the legal and financial structures, and RTC's indemnity to certificateholders for any realized losses caused by either a breach of the seller's representations and warranties or defective mortgage loan documentation.
Three pools of fixed-rate mortgage loans, divided by rates of 9.5 percent or more (Group A), less than 8.5 percent (Group B), and 8.5 percent through 9.49 percent (Group C), collateralize the certificates. The Class A certificates are entitled to interest at their stated pass- through rates, while the Class B and Class C certificates are entitled to interest at the weighted average net rates of their respective mortgage loan groups. The loans generally have original or modified terms to maturity of 15 to 30 years (10 percent are balloon loans), and are secured by one- to four-family residences, individual condominiums, or planned unit development properties located primarily in California (15 percent), Massachusetts (11 percent) Texas (10 percent), Oregon (8.1 percent) and Florida (6 percent). The overall weighted average loan-to- value ratio (LTV) is about 80 percent, with about 43 percent consisting of mortgage loans with LTVs greater than 80 percent. About 14 percent of the loans were between 30 and 89 days delinquent as of March 1. While high LTVs and delinquencies increased credit enhancement levels, this was somewhat offset by favorable seasoning of the loans.
The collateral has been sold and assigned to the trust, which issued the certificates pursuant to the March 1, 1992 pooling and servicing agreement. The loans were originated by 46 institutions for which RTC, as conservator or receiver, has agreed to sell the mortgage loans. GMAC Mortgage Corp. of Iowa will act as servicer. A real estate mortgage investment conduit election will be made for federal income tax purposes.
/CONTACT: Alexander K. Zabik, 212-908-0500 or Louis A. Colosimo, 212-908-0567, both of Fitch/ CO: Resolution Trust Corp. ST: New York IN: FIN SU: RTG SM -- NY042 -- 1515 03/25/92 12:24 EST