RMSC MORTGAGE PARTICIPATION SECURITIES 1991-18 RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
RMSC MORTGAGE PARTICIPATION SECURITIES 1991-18 RATED 'AA' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, Dec. 2 /PRNewswire/ -- Ryland Mortgage Securities Corp.'s $266 million Mortgage Participation Securities, Series 1991-18 are rated "AA" by Fitch. The rating is based on the credit enhancement provided to the senior securities by the 15.5 percent subordinated securities as well as the master servicing capabilities of Ryland Mortgage Co. and the Resolution Trust Corp.'s indemnity to securityholders for any realized losses caused by either a breach of the seller's representations and warranties or defective mortgage loan documentation.
The mortgage pool consists of fixed rate one- to four-family residential mortgage loans secured by properties located primarily in Texas (24 percent), Colorado (14.4 percent), New Jersey (12 percent), Florida, and Pennsylvania (both 11 percent). The weighted average loan- to-value ratio (LTV) is 83.3 percent and 55 percent of the pool has LTV's greater than 80 percent. The average loan balance is $48,210 and the loans are seasoned, on average, five and one-half years. One- to four-family detached dwellings make up 77 percent of the pool with investor properties and second homes totalling approximately 19 percent of the pool. Approximately 6 percent of the pool was between 30 and 59 days delinquent as of Nov. 1, 1991, which is accounted for in the credit enhancement level.
Approximately seven sellers, the majority of which are now in receivership or conservatorship under the RTC, sold the loans to Lehman Capital Corp., Inc. (LCCI). LCCI sold these loans plus a small percentage of other loans to Ryland Mortgage Securities Corp. which deposited the loans in the trust. Ryland Mortgage Co. will act as master servicer supervising 15 subservicers, three of which service approximately 80 percent of the pool. A real estate mortgage investment conduit election will be made for federal income tax purposes.
/CONTACT: Mary Sue Lundy, 212-908-0526, or Jim Nadler, 212-908-0538, both of Fitch/ CO: Ryland Mortgage Securities Corp. ST: IN: FIN SU: RTG FC -- NY063 -- 8450 12/02/91 15:07 EST