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GE CAPITAL MORTGAGE SERVICES, INC. 1993-7 RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

    NEW YORK, Aug. 5 /PRNewswire/ -- GE Capital Mortgage Services, Inc. (GECMSI) $314.1 million REMIC multi-class pass- through certificates, series 1993-7 classes T-A1 through T-A7, and R (pool 1993-7T senior certificates) and $120.3 million REMIC multi-class pass-through certificates, series 1993-7 classes F-A1 through F-A5 (pool 1993-7F senior certificates) are rated 'AAA' by Fitch.
    Credit enhancement for the 'AAA' pool 1993-7T senior certificates reflects 7.25 percent subordination provided by classes T-M and T-B1 through T-B5 (pool 1993-7T junior certificates). Credit enhancement for the 'AAA' pool 1993-7F senior certificates reflects 4.5 percent subordination provided by classes F-M and F-B1 through F-B5 (pool 1993- 7F junior certificates). Fitch believes the subordination amounts will be sufficient to cover mortgagor defaults as well as limited borrower bankruptcy, fraud, and special hazard losses. The rating also reflects Fitch's confidence in the integrity of the legal and financial structures as well as the quality of the underlying collateral.
    The certificates are collateralized by two separate pools of fixed rate, recently originated, conventional, fully amortizing mortgage loans secured by first liens on one- to four-family residential properties. The pool 1993-7T certificates is securitized by mortgage loans with original terms to maturity of 20 to 30 years.  The pool 1993-7F certificates is securitized by mortgage loans with original terms to maturity of 10 to 15 years.
    The pool 1993-7T has a weighted average original loan-to-value ratio (LTV) of 74.4 percent. Other features of the pool include limited documentation loans representing 2.5 percent, cash-out refinance loans 8.9 percent, and jumbo loans (balances between $300,001 and $600,000) 45.8 percent. Approximately 36 percent of the mortgaged properties are located in California, of which 12.7 percent are located in Los Angeles and 12.4 percent in San Francisco.
    The pool 1993-7F has a relatively low weighted average original loan-to-value ratio (LTV) of 68.5 percent. Other characteristics of the mortgage loans include limited documentation loans representing 3.9 percent of the pool, cash-out refinance loans 7.5 percent, and jumbo loans (balances between $300,001 and $600,000) 51.7 percent. The mortgaged properties are located mainly in California (17.5 percent) followed by New Jersey (13.5 percent) and Florida (9.5 percent).
    GECSMI, a wholly owned subsidiary of GE Capital Mortgage Corp., deposited the loans in the trust , which issued the certificates.  GE Capital Mortgage Services, Inc. will act as servicer for the pool. A real estate mortgage investment conduit (REMIC) election will be made with respect to the trust fund for federal income tax purposes.
    -0-             08/05/93
    CONTACT:  Betty Tan, 212-908-0688 or Joanne M. Scatassa, 212-908-0671, both of Fitch CO:  GE CAPITAL MORTGAGE SERVICES, INC. IN:  FIN SU:  RTG


-- NY102 -- X428 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993
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