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PRUDENTIAL HOME $188.1 MILLION MORTGAGE CERTIFICATES 1993-37 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 27 /PRNewswire/ -- The Prudential Home Mortgage Securities Co., Inc.'s (PHMSC) $188.1 million mortgage pass-through certificates, series 1993-37, class A are rated `AA' by Fitch. The rating reflects the credit enhancement provided by the 7.00 percent unrated subordinate class B certificates as well as the high quality of the underlying collateral, the integrity of the legal and financial structures and the servicing capabilities of The Prudential Home Mortgage Co., Inc. (PHMC).
 These recently originated, conventional, fully-amortizing, 30-year, adjustable-rate, one- to four-family residential mortgage loans are indexed to the one-year Constant Maturity Treasury Index (CMT). The interest rates on the mortgage loans, subject to 2 percent maximum annual increases and decreases (initial weighted average lifetime cap of 10.642 percent), will adjust annually. Historically, adjustable-rate mortgage loans have experienced higher default rates than fixed-rate mortgage loans due to borrower payment shock during an increasing interest rate environment. Accordingly, Fitch assumed a higher default rate to determine the appropriate credit enhancement level.
 The weighted average original loan-to-value (LTV) ratio for the mortgage pool is approximately 76 percent. The pool contains 36 percent alternative documentation loans, 7 percent cash-out refinance loans, 44 percent jumbo loans (balances between $300,000-$600,000) and 5 percent super jumbo loans (balances between $600,001-$1,000,000). The majority of loans in the pool were originated out of California (60 percent, with the largest concentrations in Los Angeles (28 percent) and San Francisco (10 percent).)
 The mortgage loans were originated or acquired by PHMC, and in turn sold to PHMSC. PHMSC, a special purpose corporation, deposited the loans into the trust, which then issued the certificates. PHMC will act as servicer for the pool. For federal income tax purposes, a real estate mortgage investment conduit election will be made with respect to the trust fund.
 -0- 8/27/93
 /CONTACT: Suzanne L. Michaud, 212-908-0604, or Joanne M. Scatassa, 212-908-0671, both of Fitch/


CO: Prudential Home Mortgage Securities Co., Inc. ST: New York IN: SU: RTG

MP -- NY043 -- 6682 08/27/93 14:25 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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