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SEARS MORTGAGE SECURITIES CORP. SERIES 1992-4 RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 SEARS MORTGAGE SECURITIES CORP. SERIES 1992-4 RATED 'AA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Feb. 28 /PRNewswire/ -- Sears Mortgage Securities Corp.'s (SMSC) $138 million individual-rate adjustable-rate mortgage pass- through certificates, Series 1992-4 are rated 'AA' by Fitch. The rating reflects the high quality of the underlying collateral as well as credit enhancement provided by a 5.5 percent General Electric Mortgage Insurance Corp. mortgage pool insurance policy and a $4.6 million Societe Generale letter of credit. The letter of credit 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 master servicer, SMSC.
 The certificates are collateralized by a pool of approximately 469 annual adjustable rate mortgage loans indexed to the one-year Constant Maturity Treasury Index. All of the mortgage loans allow the mortgagor to convert the loan from adjustable to fixed rate. The 30-year original term to maturity mortgage loans are secured by first liens on one-to- four family residential properties and approximately 21 percent of the loans are secured by units in condominiums, planned unit developments, or townhouses. The low weighted average loan-to-value (LTV) of approximately 71 percent suggests that the pool will experience a limited number of defaults. Approximately 23 percent of the mortgage loans were originated under a limited documentation program. All properties are owner-occupied and the pool is well diversified geographically, with approximately 62.4 percent of the loans in California.
 The loans were originated by or on behalf of Countrywide Funding Corp., who will service the mortgage loans. SMSC, a private residential mortgage conduit, will serve as master servicer. 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.
 -0- 2/28/92
 /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: FIN SU: RTG


CK -- NY061 -- 3851 02/28/92 16:07 EST
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Publication:PR Newswire
Date:Feb 28, 1992
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