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D&P ANALYZES IMPACT OF U.S. MILITARY BASE CLOSINGS ON RESIDENTIAL MORTGAGE-BACKED SECURITIES

 NEW YORK, Dec. 13 /PRNewswire/ -- Duff & Phelps Credit Rating Co. announces the upcoming release on January 1, 1994, of a special report on the impact of military base closings on private-label residential mortgage-backed securities.
 Duff & Phelps has reviewed data and findings from several sources, including Regional Financial Associates, a major national econometric firm, on the direct and indirect employment effects of the changes in military-related employment attributable to base closings and realignments. The closings include the cuts from 1988 through the most recently announced closings, most of which are still to be implemented. This information was compiled on a metropolitan statistical area (MSA) level in order to understand the consequences for specific areas.
 Duff & Phelps has reviewed this information on base closings in conjunction with an examination of the location by MSA of mortgage loans underlying the servicing portfolios a large sample of private-label issuers. The loan information was compiled by the Mortgage Information Corporation, a database publishing firm that tracks over 12 million mortgage loans at the MSA level. In this way, Duff & Phelps filters to the MBS market the most relevant information on base closings.
 Duff & Phelps' tracks 125 MSAs, and the significance of analyzing MBS by MSA is underscored by the report's findings-specific level. For example, while Oakland (accounting for 5.1 percent of the outstanding balance of the loans in our sample) is a net loser in military-related jobs, San Diego (accounting for 3.3 percent of the outstanding balance of the loans in the sample) gains military-related jobs. Also, while Southern California is currently experiencing a greater economic recession than the northern part of the state, the base closings have a disproportionate effect in Northern California.
 Duff & Phelps will use the findings from its research to assist in the monitoring of rated transactions as well as to adjust the location- specific factors in its rating models.
 This report underscores Duff & Phelps' continued effort to provide MBS market participants with meaningful analysis of the latest information available in the marketplace.
 To request a copy of the Military Base Closings report, please contact Kieran McShane, Vice President Marketing, Residential Mortgage- Backed Securities, at 212-908-0218.
 -0- 12/13/93
 /CONTACT: Andrew B. Jones, Group Vice President of Duff & Phelps, 212-908-0205/


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Date:Dec 13, 1993
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