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PRUDENTIAL HOME $323 MIL MTGE CTFS 1993-25 RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 21 /PRNewswire/ -- The Prudential Home Mortgage Securities Co., Inc.'s (PHMSC) $323.0 million mortgage pass-through certificates, series 1993-25, class A are rated `AA' by Fitch. The rating reflects credit enhancement provided by the 7.75 percent unrated subordinate class B certificates as well as the high quality of the underlying collateral, integrity of the legal and financial structures, and 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). Interest rates on the mortgage loans, subject to 2 percent maximum annual increases (initial weighted average lifetime cap of 10.797 percent), 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 37 percent alternative documentation loans, 8.5 percent cash-out refinance loans, 41 percent jumbo loans (balances between $300,000-$600,000), 6 percent super jumbo loans (balances between $600,001-$1,000,000). The pool is well diversified geographically, with approximately 19 percent and 39 percent in Northern and Southern California, respectively, and 18 percent in the Northeast (of which 5 percent is in Connecticut).
 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- 6/21/93
 /CONTACT: Joanne M. Scatassa, 212-908-0671, or Suzanne L. Michaud, 212-908-0604, both of Fitch/


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

MP -- NY069 -- 4116 06/21/93 15:14 EDT
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Date:Jun 21, 1993
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