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PRUDENTIAL HOME MTGE CERTS 1993-52 CLS A 'AA' BY FITCH

 NEW YORK, Oct. 28 /PRNewswire/ -- The Prudential Home Mortgage Securities Co. Inc.'s (PHMSC) $209.3 million mortgage pass-through certificates, series 1993-52, class A are rated 'AA' by Fitch.
 The 'AA' rating on the class A senior certificates reflects the credit enhancement provided by the 7.25 percent unrated subordinate class B certificates. Fitch believes this level of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud, and special hazard losses. In addition, the rating also reflects 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.
 These recently originated, conventional, fully amortizing 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 (initial weighted average lifetime cap of 10.28 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 ratio (LTV) for the mortgage pool is approximately 75 percent. The pool contains approximately 37 percent alternative documentation loans, 7 percent cash- out refinance loans, 51 percent jumbo loans (balances between $300,001 and $600,000), and 45 percent super jumbo loans (balances between $600,001 and $1,000,000).
 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- 10/28/93
 /CONTACT: Suzanne L. Michaud, 212-908-0604; or Joanne M. Scatassa, 212-908-0671, both of Fitch Investors/


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

LW-TM -- SF017 -- 8242 10/28/93 18:52 EDT
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Publication:PR Newswire
Date:Oct 28, 1993
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