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WaMu Mtge P-T Certificates Series 2003-AR7 Rated by Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 25, 2003

Fitch rates Washington mutual Mortgage Securities Corp.'s (WaMu) mortgage pass-through certificates, series 2003-AR7 classes A-1 through A-8, X, and R ($1.733 billion) senior certificates 'AAA'. In addition, Fitch rates the class B-1 certificates ($18,718,000) 'AA', class B-2 certificates ($14,261,000) 'A', class B-3 certificates ($7,130,000) 'BBB', class B-4 certificates ($2,674,000) 'BB' and class B-5 certificates ($2,674,000) 'B'. Class B-6 certificates are not rated by Fitch. The class B-4, B-5, and B-6 certificates are being offered privately.

The 'AAA' rating on senior certificates reflects the 2.80% subordination provided by the 1.05% class B-1 certificates, 0.80% class B-2 certificates, 0.40% class B-3 certificates and 0.55% privately offered class B-4, B-5, and B-6 certificates.

Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Washington Mutual Mortgage Securities Corp.'s servicing capabilities as master servicer. Fitch currently rates Washington Mutual Bank, FA 'RMS2+' for master servicing.

The mortgage loans provide for a fixed interest rate during an initial period of approximately five years. Thereafter, the interest rate will adjust annually based on the weekly average yield on US Treasury Securities adjusted to a constant maturity of one year (one-year CMT) plus a margin.

The trust is comprised of one group of 2,743 conventional, 30-year 5/1 hybrid adjustable-rate mortgage loans (ARMs) with an aggregate principal balance of $1,782,734,145. The loans are secured by first liens on residential properties. Approximately 82.1% of the mortgage loans have interest only payments scheduled during the initial 5-year period, with principal and interest payments beginning on the first adjustment date. The average principal balance as of the cut-off date is $649,921. The weighted average loan-to-value ratio (LTV) is 63.9% and the weighted average FICO score is 745. Cash-out refinance loans represent 27.28% of the loan pool. The states that represent the largest portion of the mortgage loans are California (62.12%), New York (5.20%), and Illinois (5.03%).

None of the mortgage loans originated in the state of Georgia are high cost or are governed under the Georgia Fair Lending Act (GFLA). For additional information on the GFLA, please see the press release issued March 14, 2003 entitled 'Fitch To Rate RMBS After Amendment To Georgia Predatory Lending Statute, GFLA', available on the Fitch Ratings web site at ''. In addition, none of the mortgage loans originated in the state of New York are high cost loans. For additional information on New York state anti-predatory lending legislation, please see the press release issued March 26, 2003 entitled 'Fitch: New York State Anti-Predatory Lending Legislation', also available at ''.

The certificates are issued pursuant to a pooling and servicing agreement dated June 1, 2003 among Washington Mutual Mortgage Securities Corp., as depositor and master servicer, and Deutsche Bank National Trust Company, as trustee. For federal income tax purposes, an election will be made to treat the trust fund as two real estate mortgage investment conduits (REMICs)
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Publication:Business Wire
Date:Jun 25, 2003
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