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Some upgrades emerged among a number of ratings agency actions, though more than 100 net interest margin notes saw classes downgraded.
Cenlar FSB’s primary servicer rating for prime and Alt-A product was upgraded by Fitch Ratings to RPS2- from RPS3+, while its primary specialty servicer-subservicer rating was upgraded to RPS2 from RPS2-. Fitch took the action as a result of Cenlar’s client-branding technology, interim servicing, and new loan set-up expertise. Founded in 1958, the Ewing, N.J.-based company serviced 253,046 mortgage loans for more than $54.4 billion as of Dec. 31, 2007, up from 244,242 loans for approximately $50 billion a year earlier. Central Mortgage Co.’s residential mortgage primary servicer rating for prime product was upgraded to RPS2 from RPS2- by Fitch. Its primary servicer rating for Alt-A product was upgraded to RPS2- from RPS3+. Fitch cited Central’s seasoned management team, highly developed internal quality control processes and procedures and its effective technology platform. As of February 29, 2008, the Little Rock, Ark.-based company serviced 118,205 loans for approximately $24.4 billion. UBS Mortgage Asset Securitization Transaction Asset Backed Securities mortgage pass-through certificates, series 2002-NC1 and 2002-OPT1, saw three classes downgraded by Fitch. Delinquency of at least 60 days is 34.3 percent and 25.3 percent on the subprime deals. Standard & Poor’s Ratings Services lowered its ratings on two classes of mortgage pass-through certificates issued by GSAMP Trust 2006-S5 and three classes of asset-backed certificates issued by Long Beach Mortgage Loan Trust 2006-A to ‘D’ from ‘CCC.’ The downgrades reflect the deterioration of the second-lien collateral pools as these transactions have continued to realize monthly net losses at an unprecedented pace. Fitch reported Friday that rapidly rising serious delinquency on Alt-A RMBS transactions has prompted it to revise its rating methodology for the troubled asset class. Fitch downgraded classes of the following Alt-A RMBS, reflecting its analysis of expected default and loss from delinquent loans, in addition to projected losses from the currently performing pools.
Moody’s Investors Service downgraded two tranches from CWALT Inc. Mortgage Pass-Through Certificates, series 2006-J7 based on higher than anticipated rates of delinquency, foreclosure and REO in the underlying Alt-A collateral relative to credit enhancement levels. Fitch downgraded classes of the following NIM notes, reflecting actual pay-down performance of the NIM securities to date compared to initial projections, as well as changes that Fitch previously made to its subprime loss forecasting assumptions for the underlying transactions:
Fitch said it downgraded two classes of notes issued by SHARPS CDO I, Ltd/Corp. (SHARPS I) and wrapped by CIFG following its downgrade of CIFG’s Insurer Financial Strength. In the world of commercial securitizations, a $65 million class of GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, series 2005-GG4, was upgraded by Moody’s due to increased defeasance, improved performance of two loans with underlying ratings and overall stable pool performance. Three classes for $51 million of Banc of America Commercial Mortgage Inc., series 2002-PB2, were upgraded by Moody’s as a result of increased defeasance and credit support and overall stable pool performance. A $34 million class of Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, series 2004-WHALE 4, was downgraded by Moody’s based on a decline in the estimate of property value resulting from a decrease in sustainable net cash flow. Two classes for $23 million of Greenwich Capital Commercial Funding Corp., series 2006-GG7, were downgraded by Moody’s due to increased projection of losses from specially serviced loans. Two classes of DLJ Mortgage Acceptance Corp., Commercial Mortgage Pass-Through Certificates, series 1997-CF2, were upgraded by Moody’s because of increased credit support and overall stable pool performance. |
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Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com. e-mail:Â mtgsam@aol.com |
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