Fitch Rates $644.3MM Merrill Lynch Mtge Backed Securities Trust, Series 2007-2.
--$619.2 million classes I-A1, I-A2, and X-A 'AAA' (senior certificates);
--$14.2 million class M-1 'AA';
--$4.8 million class M-2 'A';
--$2.6 million class M-3 'BBB';
--$1.9 million non-offered class B-1 'BB';
--$1.6 million non-offered class B-2 'B';
The 'AAA' rating on the senior certificates reflects the 4.15% subordination provided by the 2.20% M-1, the 0.75% class M-2, the 0.40% class M-3, the 0.30% non-offered class B-1, the 0.25% non-offered class B-2, and the 0.25% non-offered and non-rated class B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults, as well as bankruptcy, fraud, and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the capabilities of Wells Fargo Bank, N.A. (Well Fargo) as master servicer (rated 'RMS1' by Fitch).
The mortgage pool consists primarily of 1,058 recently originated, adjustable rate, conventional, first lien, one - to four-family, residential mortgage loans, a substantial majority of which have original terms to maturity of 30 years. As of the cut-off date (June 1, 2007), the pool had an aggregate principal balance of approximately $647,707,211. The average loan balance is $612,200, and the weighted average original loan-to-value ratio (OLTV) for the mortgage loans in the pool is approximately 72.81%. The weighted average FICO credit score for the pool is approximately 741. Cash-out and rate/term refinance loans represent 19.12% and 13.89% of the pool, respectively. Second and investor-occupied homes account for 10.35% and 3.12% of the pool, respectively. The states that represent the largest geographic concentration are California (50.97%), Florida (8.01%), and Virginia (3.83%).
None of the mortgage loans are 'high cost' loans as defined under any local, state, or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, see the press release 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation,' dated May 1, 2003, available on the Fitch Ratings web site at www.fitchratings.com.
The loans were purchased by Taberna Realty Holdings Trust, which were subsequently sold to Merrill Lynch Mortgage Investors, Inc. Merrill Lynch Mortgage Investors, Inc. deposited the loans in the trust, which issued the notes. The trust fund will be characterized as one or more taxable mortgage pools for federal income tax purposes. The trust fund will be treated as a qualified REIT subsidiary, however, and accordingly will not be subject to federal income taxation as a corporation, as long as 100% of the equity securities are owned by a single REIT. HSBC Bank USA, National Association, will act as trustee.
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|Date:||Jun 27, 2007|
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