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HFC HOME EQUITY ASSET BACKED CTFS 1992-1 CLASS A 'AAA' BY FITCH --FITCH FINANCIAL WIRE (FFW)--

 HFC HOME EQUITY ASSET BACKED CTFS 1992-1 CLASS A 'AAA' BY FITCH
 --FITCH FINANCIAL WIRE (FFW)--
 NEW YORK, May 20 /PRNewswire/ -- Household Finance Corp.'s Home Equity Loan Asset Backed certificates, series 1992-1 class A certificates are rated 'AAA' by Fitch. The primary source of credit enhancement for the class A certificates will be an insurance policy provided by Municipal Bond Investors Assurance Corp (MBIA). Because MBIA is not rated by Fitch, the class A certificate rating does not reflect the availability of the insurance policy.
 The 'AAA' rating reflects the availability of excess spread and the level of subordination provided by the class B and class C certificates, the high quality of the home equity loans, and the sound financial structure.
 Subordination of the class B and class C certificates, representing an 8.00 percent and .50 percent interest in the pool, respectively, together with the excess spread used to meet the 1.50 percent overcollateralization target, provides a 10 percent level of protection. The level of credit enhancement is consistent with Fitch's required 'AAA' level for this pool. In addition, excess spread will be available to offset losses and delinquencies.
 The pool consists of home equity lines of credit with a weighted average combined loan-to-value ratio (CLTV) of 66 percent. In addition, about 98 percent of the pool is owner occupied and 33 percent is in a first lien position. These characteristics strongly reduce the potential for borrower defaults. Furthermore, the pool is geographically well diversified (29 percent in California, 8 percent in New York, 7 percent in Pennsylvania, 7 percent in Washington and 6 percent in Maryland), mitigating any loss exposure associated with a depressed real estate market within a particular state or region.
 Approximately 91 percent of the pool consists of adjustable rate loans indexed to "prime", with the exception of loans originated in North Carolina, which are indexed to the 6 month T-Bill and make up about 3 percent of the pool. The class A-1 pass-through rate is indexed to 30 day commercial paper plus .40 percent, class A-2 to one-month LIBOR plus .38 percent and class A-3 is fixed at 5.8 percent. In the event that any of the class A-1, A-2, or A-3 pass-through rates exceed the weighted average net loan rates less 200 basis points (bps), the pass-through rates will be equal to the net loan rate less 200 bps.
 Because this eliminates any interest rate risk, Fitch believes that cash flow from the loans will be sufficient to pay monthly principal and interest to the class A holders.
 -0- 5/20/92
 /CONTACT: Suzanne Mistretta, 212-908-0500 or Mary Griffin, 212-908-0537, both of Fitch/ CO: Household Finance Corp. ST: IN: SU: RTG


TQ -- NY035 -- 2261 05/20/92 10:32 EDT
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Date:May 20, 1992
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