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FITCH AFFIRMS RESOLUTION TRUST CORP. SERIES 1991-9 RATINGS -- FITCH FINANCIAL WIRE --

 FITCH AFFIRMS RESOLUTION TRUST CORP. SERIES 1991-9 RATINGS
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July /PRNewswire/ -- Fitch today affirmed its ratings on the Resolution Trust Corp.'s initial $196.3 million "AAA" Class A and $15.3 million "AA" Class B mortgage pass-through certificates, Series 1991-9. Although delinquencies and foreclosures are higher than initially expected, preliminary information indicates that recoveries will be as or better than expected. In addition, servicing procedures have been modified to reflect the credit quality of the borrowers. Fitch will continue to monitor the situation.
 The Class A certificates are currently enhanced by the subordination of the Class B certificates, presently at 7.97 percent, as well as a reserve fund which currently totals 9.07 percent, while the "AA" level reflects the credit protection provided by the reserve fund.
 As of June 1, 1992, 14 percent of the mortgage loans were in foreclosure while an additional 21.8 percent of the loans were delinquent more than 30 days. The mortgage loans were all originated or acquired by Guardian Savings and Loan Association. Due to the high percentage of mortgage loans with second liens and the relatively poor credit quality of the borrowers, Fitch anticipated higher than average delinquency and defaults.
 However, the slowdown in the economy combined with traditional servicing methods has resulted in an higher than anticipated number of defaults. Nonetheless, preliminary information indicates that the low weighted average original loan-to-value of 66 percent will serve to mitigate losses. In addition, steps have been taken to modify the servicing procedures to reflect the credit quality of the borrowers.
 Fitch is working with the Resolution Trust Corp. as well as Ryland Mortgage Corp., the master servicer, to monitor the situation.
 -0- 7/28/92
 /CONTACT: Mary Sue Lundy, 212-908-0526, or Gregory Raab, 212-908-0536, both of Fitch/ CO: Resolution Trust Corp. ST: IN: FIN SU: RTG


TS -- NY037 -- 3989 07/28/92 10:43 EDT
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Publication:PR Newswire
Date:Jul 28, 1992
Words:318
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