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FITCH AFFIRMS RATINGS ON CFC AND U.S. HOME EQUITY LOAN TRUSTS -- FITCH FINANCIAL WIRE --

 NEW YORK, April 20 /PRNewswire/ -- Fitch Investors Service affirms the `AA' rating on CFC Home Equity Loan Asset-Backed Certificates Series 1989-1, $166 million Class A certificates. The `AAA' rating on U.S. Home Equity Loan Asset Backed Certificates, $87 million Series 1990-2 Class A, $215 million Series 1991-1 Class A-1 and A-2, and $487 million Series 1991-2 Class A is also affirmed. Fitch also affirms the `AA-' rating on the U.S. Home Equity Loan Asset Backed Certificates $42 million Series 1991-2 Class B certificates. The affirmations are in response to the new asset write-off policies implemented by NationsBanc Financial Services Corp. following its appointment as servicer or subservicer for the above-mentioned transactions.
 The new policy, implemented in February, provides for loans that are more than 180 days past due to be written down to the fair market value of the property. Based on Fitch's analysis of the effect on the transactions, Fitch believes the new policies will strengthen the pools further because excess cash will be utilized more efficiently and the portion of the loan balance written down will be passed through to the certificateholders much sooner than when the actual sale of the property occurs. Currently, excess cash and other distributions subordinated to the rated classes are being released prior to the property's sale and loss recognition.
 The initial impact that the new policies had on the transactions resulted in a draw on each reserve fund in February for U.S. Home Equity Loan Trust Series 1990-2 and Series 1991-2. Since CFC Series 1989-1 and U.S. Home Equity Series 1991-1 transactions do not have a reserve fund as part of the credit enhancement structure, shortfalls in principal distributions were incurred in February when the new policies were implemented. Nevertheless, such shortfalls should be subsequently recovered within six months and one month, respectively. In the future, as loan balances are charged- off and properties are subsequently sold, if recoveries exceed such charge-offs, the credit enhancement will be replenished, unless excess cash was used to cover the charge-offs. Fitch believes that certificateholders are sufficiently protected by the current levels of credit enhancement available in all of the transactions.
 Current pool information, which is updated monthly, is available to subscribers of Bloomberg and can be viewed by typing FTC go.
 -0- 4/20/93
 /NOTE TO EDITORS: To obtain a copy of Fitch's surveillance, contact Market Services at 212-908-0500/
 /CONTACT: Suzanne Mistretta of Fitch, 212-908-0637/


CO: U.S. Home Equity ST: IN: FIN SU: RTG

WB -- NY078 -- 8101 04/20/93 13:15 EDT
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Publication:PR Newswire
Date:Apr 20, 1993
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