WaMu Mtge P-T Certificates Series 2003-AR7 Rated by Fitch.
NEW YORK--(BUSINESS WIRE)--June 25, 2003
Fitch rates Washington mutual Mortgage Securities Corp.'s (WaMu) mortgage pass-through certificates, series 2003-AR7 classes A-1 through A-8, X, and R ($1.733 billion) senior certificates 'AAA'. In addition, Fitch rates the class B-1 certificates ($18,718,000) 'AA', class B-2 certificates ($14,261,000) 'A', class B-3 certificates ($7,130,000) 'BBB', class B-4 certificates ($2,674,000) 'BB' and class B-5 certificates ($2,674,000) 'B'. Class B-6 certificates are not rated by Fitch. The class B-4, B-5, and B-6 certificates are being offered privately.
The 'AAA' rating on senior certificates reflects the 2.80% subordination provided by the 1.05% class B-1 certificates, 0.80% class B-2 certificates, 0.40% class B-3 certificates and 0.55% privately offered class B-4, B-5, and B-6 certificates.
Fitch believes the above credit enhancement Credit Enhancement
A method whereby a company attempts to improve its debt or credit worthiness.
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 will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Washington Mutual Mortgage Securities Corp.'s servicing capabilities as master servicer. Fitch currently rates Washington Mutual Bank, FA 'RMS2+' for master servicing.
The mortgage loans provide for a fixed interest rate during an initial period of approximately five years. Thereafter, the interest rate will adjust annually based on the weekly average yield on US Treasury Securities adjusted to a constant maturity of one year (one-year CMT CMT Certified Medical Transcriptionist.
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The trust is comprised of one group of 2,743 conventional, 30-year 5/1 hybrid adjustable-rate mortgage Adjustable-rate mortgage (ARM)
A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or loans (ARMs) with an aggregate principal balance of $1,782,734,145. The loans are secured by first liens on residential properties. Approximately 82.1% of the mortgage loans have interest only payments scheduled during the initial 5-year period, with principal and interest payments beginning on the first adjustment date. The average principal balance as of the cut-off date is $649,921. The weighted average loan-to-value ratio Loan-to-value ratio (LTV)
The ratio of money borrowed on a property to the property's fair market value. (LTV LTV
See: Loan-to-value ratio ) is 63.9% and the weighted average FICO score FICO Score
A standard credit score which makes up a substantial portion of a credit report that credit bureaus sell to lenders so they can asses an applicant's credit risk and whether to extend them credit. is 745. Cash-out refinance loans represent 27.28% of the loan pool. The states that represent the largest portion of the mortgage loans are California (62.12%), 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 (5.20%), and Illinois (5.03%).
None of the mortgage loans originated in the state of Georgia are high cost or are governed under the Georgia Fair Lending Act (GFLA GFLA Georgia Fair Lending Act
GFLA Global Free Logging Agreement
GFLA Great Falls Lacrosse Association (Great Falls, VA)
GFLA Greater Flamingo
GFLA Green Flag-Leaf Area
GFLA Guide to Food Labelling and Advertising ). For additional information on the GFLA, please see the press release issued March 14, 2003 entitled 'Fitch To Rate RMBS RMBS Residential Mortgage-Backed Securities
RMBS Rambus, Inc. (NASDAQ stock symbol)
RMBS Russian Mortgage-Backed Securities After Amendment To Georgia Predatory Lending Statute, GFLA', available on the 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. web site at 'www.fitchratings.com'. In addition, none of the mortgage loans originated in the state of New York are high cost loans. For additional information on New York state anti-predatory lending legislation, please see the press release issued March 26, 2003 entitled 'Fitch: New York State Anti-Predatory Lending Legislation', also available at 'www.fitchratings.com'.
The certificates are issued pursuant to a pooling and servicing agreement dated June 1, 2003 among Washington Mutual Mortgage Securities Corp., as depositor and master servicer, and Deutsche Bank National Trust Company, as trustee. For federal income tax purposes, an election will be made to treat the trust fund as two real estate mortgage investment conduits (REMICs)