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CALIFORNIA FEDERAL BANK MORTGAGE PASS-THRU SERIES 1993 CI-7 CLASS A 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 1 /PRNewswire/ -- California Federal Bank's $201.1 million Adjustable Rate Mortgage Pass-Through Certificates, Series 1993 CI-7, 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 6.75 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. A reserve fund will be available for losses due to borrower bankruptcy and two special hazard policies issued by Aetna Casualty and Surety Co. will be available to cover special hazard losses. Each special hazard policy will consist of approximately one-half of the mortgage loans in the pool and coverage is restricted to loans which are insured under the respective policy.
 The certificates are collateralized by a pool of recently originated conventional, 30-year, fully amortizing, first lien residential mortgage loans secured by properties located in California. The mortgage loans are semi-annual, adjustable rate mortgage loans indexed to the one-year Constant Maturity Treasury Index. The rates are subject to periodic and lifetime adjustment caps. 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 18 percent, 21 percent and 51 percent respectively, of the mortgage pool. However, the weighted average original loan-to-value ratio (LTV) of 70 percent combined with loans having LTVs greater than 80 percent being covered by primary mortgage insurance should help mitigate the potential for defaults and losses.
 Distributions of principal and interest will be payable monthly on the 25th to the class A certificateholders. The class A pass-through rate, initially 4.052 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- 3/1/93
 /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

TS -- NY058 -- 1396 03/01/93 11:56 EST
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Date:Mar 1, 1993
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/C O R R E C T I O N -- SEARS SAVINGS BANK/

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