| Fitch Rates $527.7MM Wells Fargo Home Equity ABS 2007-1 Trust
The 'AAA' rating on the senior certificates reflects the 20.10% total credit enhancement provided by the 4.30% class M-1, 2.90% class M-2, 1.80% class M-3, 1.60% class M-4, 1.60% class M-5, 1.45% class M-6, 1.40% class B-1, 1.25% class B-2, 0.85% class B-3 and 2.95% initial overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. In addition, the ratings reflect the quality of the loans and the integrity of the transaction's legal structure as well as the capabilities of Wells Fargo Bank, N.A. (rated 'RPS1' by Fitch) as servicer. HSBC Bank USA, National Association is the trustee. The certificates are supported by 3,528 subprime, fixed- and adjustable interest rate, monthly pay, one- to four-family, residential first and second lien mortgage loans as collateral.
To Subprime Origination
General Motors Acceptance Corp. said Wednesday that it intends to "sharply" cut the volume of subprime mortgages originated by its Residential Capital LLC unit for 2007, amid continued pressure from housing prices and the nonprime mortgage market. GMAC, which used to be wholly owned by General Motors Corp., ... .
THE SUBPRIME MORTGAGE IMPLOSION UNLOCKS DOORS TO CAREERS IN ...
Pleasant Grove, UT/March 28, 2007/FPSnewswire/ -- It's certainly not "business as usual" in the residential mortgage industry. For some time now, the pressure has been mounting in numerous ways. More brokers than ever are competing for fewer and fewer deals. Loan fees are getting squeezed. More and more borrowers are turning to online lenders who do loans very cheaply. And now, to put the icing on the cake, there's the subprime implosion. Because of secondary market pressure, the most aggressive loan programs are already beginning to disappear - and more will certainly follow. Underwriting guidelines are tightening. Because of this, the pool of borrowers that qualify for loans will continue to shrink even further. "One path that leads to increased income is the commercial mortgage business," says Joe Mardesich, president and CEO of Nationwide Commercial Funding, a national mortgage brokerage.
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