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SALOMON BROS. MTG. SECS. VII SERIES 1992-6 RATED 'AAA/AA' BY FITCH --FITCH FINANCIAL WIRE --

SALOMON BROS. MTG. SECS. VII SERIES 1992-6 RATED 'AAA/AA' BY FITCH
 --FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 30 /PRNewswire/ -- Salomon Brothers (NYSE: SB) Mortgage Securities VII's $150.5 million mortgage pass-through certificates, series 1992-6 classes A and R, are rated 'AAA' and the $26.9 million class M certificates are rated 'AA' by Fitch.
 The 'AAA' rating on the class A and R certificates primarily reflects the credit enhancement provided by the 15.0 percent subordination of the class M certificates, which is further supported by two mortgage pool insurance policies to provide 'AA' level protection. The 7.5 percent General Electric Mortgage Insurance Corp. (GEMICO) pool policy covers 63.7 percent of the mortgage loans and the 5.0 percent PMI Mortgage Insurance Co. pool policy, with a 3.0 percent supplemental GEMICO pool policy, covers 36.3 percent of the mortgage loans. The credit loss coverage under the GEMICO supplemental policy will not be available until the PMI pool policy is depleted. PMI's 'AAA' claims- paying ability was placed on FitchAlert with negative implications on Oct. 8. Both policies also contain a fraud waiver which covers losses due to borrower fraud up to specified amounts. Special hazard and borrower bankruptcy loss coverage for the total mortgage pool will be provided by a $1.9 million unrated class B certificate. The ratings also reflect Fitch's confidence in the integrity of the legal and financial structures, as well as the quality of the underlying collateral.
 The collateral for the certificates is provided by two pools, divided by their respective pool insurance coverage providers. The GEMICO mortgage pool is composed of recently originated, 30-year adjustable-rate mortgage loans secured by first liens on one- to four- family residential properties located primarily in California (95 percent). Other features of the pool include a weighted average original loan-to-value ratio (LTV) of 74 percent, limited documentation loans represent approximately 18 percent of the pool, cash-out refinance loans 42 percent, and jumbo loans 38 percent (balances between $300,001- $600,000). The PMI mortgage pool is also made up of recently originated, 30-year adjustable rate mortgage loans secured by first liens on one-to-four family residential properties located primarily in California (99 percent). The pool has a weighted average original LTV of 74 percent, limited documentation loans represent approximately 28 percent, cash-out refinance loans 51 percent, and jumbo loans 35 percent.
 All of the mortgage loans were acquired by Salomon Brothers Mortgage Securities VII, Inc. (SBMS) from Salomon Brothers Realty Corp., an affiliate of SBMS, which acquired the mortgage loans from seven unaffiliated sellers. SBMS, a special purpose corporation, deposited the loans in the trust, which issued the certificates. PHH US Mortgage Corp. will act as master servicer for the pool. A real estate mortgage investment conduit (REMIC) election will be made with respect to the trust fund for federal income tax purposes.
 -0- 10/30/92
 /CONTACT: Betty Tan, 212-908-0688 or Alexander K. Zabik, 212-908-0634, both of Fitch/
 (SB) CO: Salomon Brothers Mortgage Securities VII ST: New York IN: FIN SU: RTG


TM -- NY092 -- 7307 10/30/92 16:41 EST
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Publication:PR Newswire
Date:Oct 30, 1992
Words:516
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