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CAL FED BANK MORTGAGE PASS-THRU SERIES 1992 JO-1 CLASS A 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 30 ~PRNewswire~ -- California Federal Bank's $122.7 million Adjustable Rate Mortgage Pass-Through Certificates, Series 1992 JO-1 Class A, are rated 'AA' by Fitch. The rating reflects the quality of the underlying collateral, the integrity of the legal and financial structures, and the excellent servicing capabilities of the CalFed as servicer. Credit loss protection will be provided by a 7.5 percent PMI Mortgage Insurance Co. mortgage pool insurance policy. Fitch believes that PMI will provide adequate 'AA' credit loss protection to the pool, although its 'AAA' claims-paying ability is currently on FitchAlert with negative implications. In addition, borrower bankruptcy and special hazard losses will be covered by a $100,000 reserve fund and an $3.7 million Aetna Casualty and Surety Co. special hazard insurance policy, respectively.
 The certificates are collateralized by a pool of recently originated conventional, 30-year, fully amortizing, first lien residential mortgage loans secured by properties located primarily in California. The loans are semi-annual, adjustable rate indexed to the one-year Constant Maturity Treasury Index. The credit enhancement level reflects the presence of cash-out refinance loans, limited documentation loans and loans with balances greater than $300,000 which comprise approximately 40 percent, 28 percent and 61 percent respectively, of the mortgage pool. However, the relatively low weighted average original loan-to- value ratio (LTV) of 69.7 percent combined with at least 98 percent of the pool being secured by properties which are primary residences should help mitigate the potential for defaults and losses. In addition, all loans with LTVs greater than 80 percent are covered by primary mortgage insurance.
 Distributions of principal and interest will be payable monthly on the 25th to the class A certificateholders. The class A pass-through rate, initially 4.229 percent, will equal the weighted average of the net mortgage rates on each of the mortgage loans.
 All of the mortgage loans were originated by CalFed, which will also act as servicer. Fitch believes that the bank will provide excellent servicing of the mortgage loans. A real estate mortgage investment conduit election will be made with respect to the trust fund for federal income tax purposes.
 -0- 11~30~92
 ~CONTACT: Michele J. Loesch, 212-908-0686, or Alexander K. Zabik, 212-908-0634, both of Fitch~
 (CAL)


CO: California Federal Bank ST: California IN: FIN SU: RTG

KD -- NY078 -- 2120 11~30~92 17:42 EST
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Date:Nov 30, 1992
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