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SEARS MORTGAGE SECURITIES CORP. $238.3 MILLION SERIES 1993-7 'AAA/AA' BY FITCH - FITCH FINANCIAL WIRE --

 NEW YORK, July 12 /PRNewswire/ -- Sears Mortgage Securities Corp.'s (SMSC) $234.7 million mortgage pass-through certificates, Series 1993-7, classes T, H, F, S, and W are rated "AAA" by Fitch. The $3.6 million class M certificates are rated "AA".
 The "AAA" rating on classes T-1 through T-9, H, F-1, F-2, F-3, S-1, S-2, S-3, and W reflects credit loss protection provided by the 1.5 percent subordinated class M as well as credit loss coverage provided by a 2.5 percent General Electric Mortgage Insurance Corp. (GEMICO) pool insurance policy, a 2 percent PMI Mortgage Insurance Co. (PMI) pool policy and a 2 percent United Guaranty Residential Insurance Co. (UGI) pool policy. A $6.8 million reserve fund offers additional support, encompassing categorical losses in specified amounts arising from special hazards, borrower fraud, and mortgagor bankruptcy. The ratings also reflect Fitch's confidence in the legal and financial structures as well as the strength of the master servicer, SMSC.
 The mortgage pool consists of loans underwritten by PMI (approximately 15 percent), UGI (26 percent), and GEMICO (59 percent). The PMI pool policy will cover credit losses up to 2 percent of the outstanding principal balance of the PMI mortgage loans and the UGI policy will cover credit losses up to 2 percent of the outstanding principal balance of the UGI mortgage loans. The 2.5 percent GEMICO pool policy will cover losses on the GEMICO mortgage loans, and credit losses on the PMI and UGI mortgage loans, all of which are also covered by the respective PMI or UGI policies, after the PMI or UGI policies are exhausted. Additionally, the GEMICO policy will cover default losses otherwise covered by the PMI or UGI policies, in the event PMI or UGI is declared insolvent or put into receivership.
 The mortgage pool consists of 15-year, recent origination, conventional, fixed-rate, one- to four-family residential mortgage loans. Approximately 29 percent and 39 percent, respectively, of the pool is secured by Northern and Southern California properties, 13 percent are cash-out refinance loans, and 47 percent is comprised of jumbo loans (balances between $300,001 - $600,000). The credit enhancement reflects the very low weighted average original loan-to- value ratio of 63 percent combined with the credit quality of the 15- year mortgage loans.
 All loans were originated in accordance with the underwriting guidelines of SMSC, a private residential mortgage conduit, which also acts as master servicer. Two real estate mortgage investment conduit elections will be made with respect to the trust fund for federal income tax purposes.
 -0- 7/12/93
 /CONTACT: Michele J. Loesch, 212-908-0686, or Jill Guido, 212-908-0682, both of Fitch/
 (S)


CO: Sears Mortgage Securities Corp. ST: IN: FIN SU: RTG

TS -- NY078 -- 0563 07/12/93 16:29 EDT
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Date:Jul 12, 1993
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