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CALFED $58.7 MILLION MORTGAGE PASS-THROUGHS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

    CALFED $58.7 MILLION MORTGAGE PASS-THROUGHS RATED 'AA' BY FITCH
                       -- FITCH FINANCIAL WIRE --
    NEW YORK, Nov. 25 /PRNewswire/ -- California Federal Bank, FSB's (NYSE: CAL) (CalFed) $58.7 million mortgage pass-through certificates, Series 1991-CI-3 Class A are rated 'AA' by Fitch.  The rating is based on the quality of the collateral, the credit loss coverage provided by a 7.25 percent PMI Mortgage Insurance Co. pool insurance policy, the excellent servicing capabilities of the servicer and the integrity of the legal and financial structures.
    The collateral consists of conventional, fully amortizing, first lien residential mortgage loans originated by or for CalFed with original terms of 15 to 30 years.  Each loan has a fixed rate and payment for the first year, which thereafter adjusts annually to the one-year U.S. Treasury Security Index plus a margin of between 2.75 percent and 3.375 percent, subject to an annual rate cap of 2.0 percent, lifetime rate cap of between 12.75 percent and 14.50 percent, and lifetime rate floor of between .75 percent and 5.0 percent.
    The loans were originated between 1985 and 1989 by CalFed or its subsidiary, CalFed Mortgage Co., under the CalFed guidelines, 50 percent under the CalFed limited documentation program, and 10 percent for the purpose of cash-out refinancing.  At least 85 percent of the pool consists of single-family detached properties, approximately 11 percent are condos, townhouses and planned unit developments, and 4 percent are two-to-four family units.  Approximately 95 percent of the pool consists of owner-occupied primary residences, and at least 22 percent of the properties are located in Florida, 21 percent in New York, 19 percent in New Jersey, 18 percent in Georgia, 17 percent in Connecticut, and 3 percent in Nevada.  The weighted average original loan-to-value ratio of the loans is 76 percent, the average original balance is $162,000, and the weighted average seasoning is approximately 3-1/2 years.
    Fitch believes the 7.25 percent pool policy with a fraud waiver will protect the certificateholders from 'AA' level credit risks.  In addition, the $100,000 Bankruptcy Reserve Fund is sufficient to protect certificateholders against borrower bankruptcy losses.
    The mortgage loans were sold by CalFed to the trust for purposes of issuing the certificates, for which a REMIC election will be made. CalFed will act as servicer for the pool, and given the very low delinquency and loss history on their residential mortgage loan portfolio, Fitch believes they will provide excellent servicing for this pool as well.
                -0-     11/25/91
    /CONTACT: Louis Colosimo, 212-908-0567, or Mary Sue Lundy, 212-908-0526, both of Fitch/
    (CAL) CO:  California Federal Bank, FSB ST:  California IN:  FIN SU:  RTG SB -- NY060 -- 6963 11/25/91 15:27 EST
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Publication:PR Newswire
Date:Nov 25, 1991
Words:453
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