Printer Friendly

Fitch Rates $644.3MM Merrill Lynch Mtge Backed Securities Trust, Series 2007-2.

NEW YORK -- Fitch rates Merrill Lynch Mortgage Backed Securities Trust, Series 2007-2, residential mortgage pass-through certificates, as follows:

--$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.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jun 27, 2007
Words:535
Previous Article:Monongahela Power Company Declares Quarterly Dividend on Preferred Stock.
Next Article:Mapping Michigan Communities is Focus of Introductory GIS and Analysis Workshops Offered by New Urban Research Inc.


Related Articles
USA OUTDOOR TRACK & FIELD CHAMPIONSHIPS.
Governor signs payday loan reforms.
FOR THE RECORD.
Paul Fried; the man with the capital plan.
Silverstein recognized for his role in New York history.
Fitch Affirms 3, Downgrades 2, & Places 3 Classes on RWN from MLMI 2006-SL2.
Fitch Affirms 16 & Downgrades 1 Class from 2 MLMI Trusts.
Three reasons to keep an eye on Indy.
2ND RATE HIKE REQUESTED FOR TRASH SERVICES COMPANY CITES FUEL COSTS.
Is the system the problem?

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters