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SEARS MORTGAGE SECURITIES CORP. SERIES 1993-8 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 2 /PRNewswire/ -- Sears Mortgage Securities Corp.'s (SMSC) $81.6 million adjustable-rate mortgage pass-through certificates, series 1993-8, class A is rated 'AAA' by Fitch. The $11.1 million class M certificates are rated 'AA'.
 The 'AAA' rating on the class A certificates reflects the credit loss protection provided by the 12% subordinated class M certificates as well as credit loss coverage provided by a 7.5 percent General Electric Mortgage Insurance Corp. (GEMICO) pool insurance policy and 3 percent PMI Mortgage Insurance Co. pool policy. The 'AA' rating on the class M certificates reflects the credit coverage provided by the GEMICO and PMI pool policies. A $4.8 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.
 Approximately 41 percent of the mortgage pool consists of loans underwritten by GEMICO and 59 percent were underwritten by PMI. The GEMICO pool policy covers credit losses up to 7.5 percent of the outstanding principal balance of all of the mortgage loans and the PMI policy covers credit losses up to 3 percent of the outstanding principal balance of the PMI loans. The GEMICO pool policy also contains a first loss deductible, equal to the PMI policy amount, whereby GEMICO will cover losses on the PMI loans once the deductible has been met.
 The mortgage pool consists of recently originated, conventional, fully amortizing, first lien, adjustable-rate 30 year mortgage loans located primarily in California (79 percent). The loans are indexed to the six month London Interbank Offered Rate Index, adjust semi- annually and are subject to periodic and lifetime interest rate adjustment caps. The weighted average original loan-to-value ration of the pool is 76 percent. Approximately 19 percent of the pool are cash- out refinance loans; 45 percent are jumbo loans (balances between $300,001 - $600,000); and 8 percent were originated under a limited documentation program.
 All loans were originated in accordance with the underwriting guidelines of SMSC, a private residential mortgage conduit, which also acts as master servicer. A real estate mortgage investment conduit election will be made with respect to the trust fund for federal income tax purposes.
 -0- 9/2/93
 /CONTACT: Michele J. Loesch, 212-908-0686, or Jill Guido, 212-908-0682, both of Fitch/


CO: Sears Mortgage Securities Corp. ST: New York IN: INS SU: RTG

TM -- NY088 -- 8637 09/02/93 18:34 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
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