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BEAR STEARNS MORTGAGE SECURITIES 1992-1 & 1992-4 MORTGAGE CERTIFICATES AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE

 NEW YORK, May 25 /PRNewswire/ -- All Bear Stearns Mortgage Securities Inc.'s 'AAA' mortgage pass-through certificates series 1992-1 and 1992-4 are affirmed by Fitch, as are the 'AA' series 1992-1 and 1992-4 class SH certificates. Fitch also affirms its $100,000 borrower bankruptcy reserve requirement for 'AAA' and 'AA' ratings on pools of mortgage loans secured by first liens on primary residences.
 "Cramdown," or "lien stripping," of first liens on primary residences, although rare, has occurred in borrower bankruptcies when the value of the real property securing the loan is less than the outstanding balance of the mortgage, and the court prevents foreclosure and reduces the mortgage to the current property value.
 Fitch believes its $100,000 reserve requirement is sufficient to cover this risk.
 Concern has been expressed that recent increases in personal bankruptcy filings, particularly under Chapter 11, might lead to an increase in cramdowns. The Administrative Office of the U.S. Courts (AOC) has informed Fitch that personal bankruptcy filings increased to 900,874 in 1992 from 872,437 in 1991. Of 1992s filings, 71.44 percent were filed under Chapter 7, 28.21 percent under Chapter 13, and 0.35 percent under Chapter 11. Cramdowns, however, continue to be infrequent. In conversations with FNMA and FHLMC, they estimate that their portfolios (totaling over $1 trillion) have experienced less than 65 attempts to cramdown mortgages, and that the courts have permitted cramdown in no more than six of these cases.
 Moreover, cramdown experience is likely to be even less frequent for "jumbo" loans than for the conforming loans in FNMA's and FHLMC's portfolios. Mortgagors on jumbo loans are more likely to file under Chapter 7 or Chapter 11, since Chapter 13 cannot be used where the debtor's secured debt is greater than $350,000. However, cramdown is not available under Chapter 7 due to the Supreme Court's January 1992 decision in Dewsnup vs. Timm, et al. As shown by the AOC data, Chapter 11 filings are rare due to their cost and complexity. The AOC indicated that there were only three more Chapter 11 filings in 1992 than in 1991. Based on discussions with the American Bankruptcy Institute and other bankruptcy professionals, there has been no notable increase in individual debtor filings under Chapter 11 in 1993.
 Finally, for both jumbo and conforming loans, cramdown attempts have occurred primarily under Chapter 13. Since the Dewsnup decision, four of the nine U.S. Courts of Appeals have addressed the cramdown issue and their decisions have been split over whether cramdown is available under Chapter 13. The Supreme Court is expected to resolve this issue in Nobleman vs. American Savings Bank. Fitch will continue to monitor the Nobleman case, which is expected to be decided in early July.
 -0- 5/26/93
 /CONTACT: Neil Baron, 212-908-0509, James Nadler, 212-908-0538, or Leah Murch, 212-908-0511, all of Fitch/
 (BSC)


CO: Bear Stearns Mortgage Securities Inc. ST: New York IN: FIN SU: RTG

PS -- NY032 -- 2422 05/26/93 11:45 EDT
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Date:May 26, 1993
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