SEARS MORTGAGE $103.1 MILLION SERIES 1991-N RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
SEARS MORTGAGE $103.1 MILLION SERIES 1991-N RATED 'AAA' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, Dec. 17 /PRNewswire/ -- Sears Mortgage Securities Corp.'s (SMSC) $103.1 million Multi-Class Mortgage Pass-Through Certificates, Series 1991-N are rated 'AAA' by Fitch.
The rating reflects the high quality of the underlying collateral as well as credit enhancement provided by a GEMICO mortgage pool insurance policy, and a reserve fund. The reserve fund encompasses categorical losses in specified amounts arising from special hazard, certain mortgage repurchase defaults by the company and mortgagor bankruptcy. Additionally, the rating reflects Fitch's confidence in the integrity of the legal and financial structure, as well as the strength of the servicer, SMSC.
The certificates are collateralized by a pool of 366 conventional, fixed rate, 30-year mortgage loans secured by first liens on one-to-four family residential properties. The low weighted average loan-to-value (LTV) of approximately 70 percent suggests that the pool will experience a limited number of defaults. All of the mortgage loans are secured by owner-occupied properties which will also limit the default experience of the pool. The pool is well diversified geographically, with approximately 38 percent of the loans in California.
The loans were originated or purchased by or on behalf of, and in accordance with the underwriting guidelines of, SMSC and were deposited to the trust which issued the certificates. The transaction is structured as a "super senior" whereby the class E certificates are subordinated to the class A,B,C,D, and F certificates (the senior certificates.)
SMSC, a private residential mortgage conduit, will serve as master servicer for the mortgage loans. Fitch is very confident with the master servicing capabilities of SMSC. A REMIC election will be made with respect to the trust for federal income tax purposes.
/CONTACT: Alexander K. Zabik, 212-908-0500, or Louis A. Colosimo, 212-908-0567, both of Fitch/
(S) CO: Sears Mortgage Securities Corp. ST: Illinois IN: REA SU: RTG SM -- NY083 -- 3138 12/17/91 17:02 EST