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RESIDENTIAL FUNDING MORTGAGE CERTS 1993-S40 CLASS A&R 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 3 /PRNewswire/ -- Residential Funding Mortgage Securities I, Inc.'s (RFMSI) $405.5 million mortgage pass-through certificates, series 1993-S40 classes A and R, are rated 'AAA'. The $10.8 million class M-1 certificates are rated 'AA', $6.5 million class M-2 certificates 'A', and $4.3 million class M-3 certificates 'BBB'.
 Credit enhancement for the 'AAA' class A and R senior certificates reflect subordination of the 2.5% class M-1, 1.5% class M-2, 1.0% class M-3, and 1.25% unoffered class B certificates. Credit enhancement for the 'AA' class M-1 is provided by 3.75% subordination of the class M-2, M-3, and class B certificates. The 'A' class M-2 certificates are backed by subordination of the 2.25% class M-3 and B certificates. Lastly, class M-3 is rated 'BBB' based on subordination of the 1.25% class B. Fitch believes the subordination amounts will be adequate to cover mortgagor defaults as well as bankruptcy, fraud, and special hazard losses in limited amounts of $115,508, $8,649,790, and $5,048,413, respectively. In addition, the ratings reflect the strength of the legal and financial structures, and Residential Funding Corp.'s (RFC) servicing capabilities as master servicer.
 The issue is securitized by a mortgage pool consisting of recently originated, conventional, fully amortizing, 30-year, fixed-rate, mortgage loans secured by first liens on one- to four-family residential properties. The mortgage pool demonstrates a weighted average original loan-to-value ratio (LTV) of 71.8%. Loans originated under a limited documentation program account for approximately 17.4% of the pool; cash- out refinance loans 11.6%; jumbo loans 40.8% (balances between $300,001- $600,000); and super jumbo loans 5.8% (balances between $600,001- $1,000,000). Approximately 50% of the mortgaged properties are located in California, of which 18% comprise of properties located in Los Angeles and 15% in San Francisco.
 With the exception of 13.9% purchased from GMAC Mortgage Corp. of PA, an RFC affiliate, all of the mortgage loans were purchased by RFC from unaffiliated sellers. RFMSI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, two separate real estate mortgage investment conduit (REMIC) elections will be made with respect to the trust fund.
 -0- 12/3/93
 /CONTACT: Betty Tan, 212-908-0688 or Justin L. Ventura, 212-908-0675, both of Fitch/


CO: Residential Funding Mortgage Securities I, Inc. ST: California IN: FIN SU: RTG

WB -- NY032 -- 0181 12/03/93 11:39 EST
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Publication:PR Newswire
Date:Dec 3, 1993
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