Printer Friendly

SALOMON BROTHERS MORTGAGE SECURITIES VII SERIES 1993-2 RATED 'AAA/AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 1 /PRNewswire/ -- Salomon Brothers Mortgage Securities VII, Inc.'s (SBMS) $302.7 million mortgage pass-through certificates, series 1993-2, classes A-1A, A-1B, A-1C, A-3, R-I, and R-II, are rated "AAA" by Fitch. The $232.8 million class A-2, A-4, A-5, A-6, A-7, M-1A, M-1B, and M-3 certificates are rated "AA".
 The mortgage pool, divided into seven subpools, consists of first lien, one- to four-family residential, fixed and 30-year adjustable rate, fully amortizing, and balloon payment mortgage loans. The loans were underwritten either by General Electric Mortgage Insurance Corp. (GEMICO) or PMI Mortgage Insurance Co. (PMI), approximately 62 percent and 38 percent, respectively.
 Subpool 1 consists of adjustable-rate mortgages (ARMs) indexed to the six-month London Interbank Offered Rate. Subpools 2, 3, and 4 are composed of ARMs indexed to the weekly average yield on U.S. Treasury securities adjusted to a constant maturity of one year (CMT). Subpool 5 contains ARMs indexed to the weekly average yield on secondary market interest rates for six-month negotiable certificates of deposit, while subpool 6 is composed of seven-year, fixed-rate balloon payment mortgage loans. Lastly, subpool 7 consists of mortgage loans with interest rates fixed for the first five years from origination and thereafter adjusting annually to the one-year CMT.
 The "AAA" ratings on classes A-1A, A-1B, A-1C, A-3, R-I, and R-II reflect credit loss protection provided by the 6.5 percent GEMICO or 8.75 percent PMI mortgage pool insurance policy. In the case of classes A-1A, A-1B, A-1C, R-I, and R-II, the ratings also reflect subordination of classes M-1A and M-1B. The class A-3 rating also reflects subordination of class M-3.
 The "AA" rating is based on credit support coverage provided by the GEMICO and PMI pool policies. Fitch's rating also reflects the integrity of the legal and financial structures and master servicing capabilities of Countrywide Funding Corp. and PHH US Mortgage Corp. (PHH).
 The pool policies exclude losses arising from borrower balloon payment default. However, a 1.5 percent unrated class B certificate is available as support for class A-6 to cover such losses. Limited fraud losses are covered by fraud waivers provided by GEMICO and PMI.
 Special hazard and bankruptcy losses will initially be covered by three special hazard insurance policies and bankruptcy bonds, each issued by Commerce and Industry Insurance Co. For subpool 1, the policy covers $3.8 million for special hazard and $930,000 for bankruptcy; subpools 2, 3, and 5, $2.2 million and $292,000, respectively: and subpools 4, 6, and 7, $3.8 million and $179,000, respectively.
 SBMS acquired all of the mortgage loans from Salomon Brothers Realty Corp., an SBMS affiliate, which, in turn purchased the loans from Countrywide or various unaffiliated sellers. Countrywide will master service the loans originated or acquired by Countrywide and PHH will master service the loans originated or acquired by the various unaffiliated sellers. SBMS, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, two separate real estate mortgage investment conduit elections will be made with respect to the trust fund.
 -0- 4/1/93
 /CONTACT: Joanne M. Scatassa, 212-908-0671, or Betty Tan, 212-908-0688, both of Fitch/
 (SB)


CO: Salomon Brothers Mortgage Securities VII, Inc. ST: New York IN: FIN SU: RTG

GK -- NY109 -- 2226 04/01/93 16:47 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 1, 1993
Words:555
Previous Article:AMBER'S STORES MARCH SALES UP 59 PERCENT
Next Article:MINNESOTA $334.6 MILLION GENERAL OBLIGATION REFUNDING BONDS RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
EIGHTEEN SALOMON BROTHERS MORTGAGE SECURITIES IV CMOS RAISED TO 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
SALOMON BROS. MTG. SECS. VII SERIES 1992-6 RATED 'AAA/AA' BY FITCH --FITCH FINANCIAL WIRE --
SALOMON BROTHERS MORTGAGE SECS. VII, SERIES 1992-7 'AAA/AA' BY FITCH -- FITCH FINANCIAL WIRE --
SALOMON BROTHERS MORTGAGE SECURITIES VII SERIES 1993-1 RATED 'AAA/AA' BY FITCH -- FITCH FINANCIAL WIRE --
SALOMON BROTHERS MORTGAGE SECURITIES VII $279 MILLION SERIES 1993-3 'AAA' BY FITCH -- FITCH FINANCIAL WIRE
SALOMON BROTHERS MORTGAGE SECURITIES VII SERIES 1993-4 RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
SALOMON BROTHERS MORTGAGE SECURITIES VII SERIES 1993-C1 RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --
SALOMON BROTHERS MORTGAGE SECURITIES VII 1993-6A CLASS 6A-A&R ARE RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
SBMS VII, SERIES 1994-3 CLASS A&R MORTGAGE PASS-THRUS 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
SALOMON BROTHERS MORTGAGE SECURITIES VII SERIES 1994-S9 RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters