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SALOMON BROTHERS MORTGAGE SECURITIES VII SERIES 1993-1 RATED 'AAA/AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 28 /PRNewswire/ -- Salomon Brothers Mortgage Securities VII's $236.4 million mortgage pass-through certificates, series 1993-1, classes A, B, C, D-A, D-B, E, F, G, H-1, H-2, H-3, H-Z, M-C, M-DB, M-E, XS, PO, and R certificates (senior certificates) are rated "AAA" and the $8.0 million class M certificates are rated "AA" by Fitch.
 The "AAA" rating on the senior certificates reflect 8.25 percent credit enhancement provided by the class M subordination and a 5.0 percent General Electric Mortgage Insurance Corp. (GEMICO) mortgage pool insurance policy, while the credit enhancement for class M is supported by the 5.0 percent GEMICO pool policy. Fraud losses, up to a specified amount, initially will be covered by a fraud waiver provided by the GEMICO pool policy. To a certain extent, special hazard and borrower bankruptcy losses will be covered by the $2.6 million unrated class SH certificate. The ratings also reflect Fitch's confidence in the integrity of the legal and financial structures, quality of the underlying collateral, and solid historical mortgage portfolio performance of the master servicer, PHH US Mortgage Corp. (PHH).
 The pool consists of 854 recently originated, conventional, fully- amortizing 15- and 30-year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties located primarily in the Northeast (59.8 percent) and in California (18.4 percent). The weighted average original loan-to-value (LTV) ratio is 74.3 percent. In addition, the mortgage pool is composed of 3.4 percent limited documentation loans, 1.4 percent investor properties, 8.7 percent equity refinance loans, and 36.7 percent jumbo loans (balances between $300,001 and $600,000).
 Classes C, D-B, and E are structured in a "super senior" format, whereby, in the unlikely event the GEMICO pool policy and class M are reduced to zero, classes M-C, M-DB, and M-E (senior support classes supporting super senior classes C, D-B, and E, respectively) will absorb any defaulted mortgage losses otherwise allocable to the super senior classes. However, Fitch believes, the credit enhancement provided by the subordination of the class M and the GEMICO pool policy ensures adequate "AAA" level protection to the senior support certificates, regardless of its loss position.
 Salomon Brothers Mortgage Securities VII, Inc., a special purpose corporation, acquired the mortgage loans from PHH and deposited the loans in the trust, which issued the certificates. PHH will act as master servicer for the pool. A separate real estate mortgage investment conduit election will be made with respect to the trust fund for federal income tax purposes.
 -0- 1/28/93
 /CONTACT: Betty Tan, 212-908-0688, or Joanne M. Scatassa, 212-908-0671, both of Fitch/


CO: Salomon Brothers Mortgage Securities VII ST: IN: FIN SU: RTG

GK -- NY072 -- 0317 01/28/93 13:39 EST
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Date:Jan 28, 1993
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