Last week\'s residential mortgage ratings actions
By SAM GARCIA
5/23/2002

Standard & Poor's (S&P) raised its ranking on First Horizon Home Loans to ABOVE AVERAGE from AVERAGE as a residential mortgage loan servicer, with a Stable outlook. The move reflects First Horizon's highly experienced management team, sound internal controls and risk management, comprehensive training programs, thorough policies and procedures, demonstrated default management, and effective use of technology. In addition, First Horizon continues to improve its operating efficiencies through technology enhancements, vendor management, and employee training and development, along with various and sundry motivational incentive practices, and extensive management monitoring tools.

Moody's Investor Service rated classes of Chase's 2002-S6 jumbo mortgage deal at 'Aa3' to 'Ba3' based on the quality of the underlying loans, the structure of the transaction, and the credit support for the rated certificates provided primarily through subordination. The credit quality of the 15- and 30-year fixed rate loans backing the deal are comparatively good for prime jumbo loans because of Chase's strong underwriting guidelines, good overall geographic diversification, the high proportion of retail originations and purchase-money mortgages, and good LTV's. The weighted average loan-to-value (LTV) on just the 30-year loans is 70% and 60% for just the 15-year loans. The weighted average FICO's are 723 on the 30-year loans and 729 for the 15-year loans.

The following classes of 15-year and 30-year fixed rate Norwest Asset Securities Corp.'s residential mortgage pass-through certificates (RMPTC's) were raised and affirmed by S&P, reflecting an increase in credit quality.

* 1996-1
* 1996-2
* 1996-3
* 1996-4
* 1997-5
* 1996-6
* 1996-7
* 1997-5
* 1997-9
* 1997-11
* 1997-16
* 1997-18
* 1997-20
* 1998-2
* 1998-3
* 1998-7
* 1998-9
* 1998-10
* 1998-11
* 1998-12
* 1998-13
* 1998-14



* 1998-15
* 1998-16
* 1998-17
* 1998-18
* 1998-20
* 1998-21
* 1998-22
* 1998-23
* 1998-24
* 1998-25
* 1998-26
* 1998-27
* 1998-28
* 1998-29
* 1998-30
* 1998-31
* 1998-32
* 1998-33
* 1998-34
* 1999-1
* 1999-2
* 1999-3



* 1999-4
* 1999-5
* 1999-6
* 1999-7
* 1999-8
* 1999-9
* 1999-10
* 1999-11
* 1999-12
* 1999-13
* 1999-15
* 1999-17
* 1999-18
* 1999-19
* 1999-21
* 1999-22
* 1999-23
* 1999-25
* 1999-27
* 1999-28

Fitch Ratings upgraded the following series of RMPTC's as a result of low delinquencies and losses, as well as increased credit support.

* Bank of America Mortgage Securities, Inc. , Series 1997-1
* Bank of America Mortgage Securities, Inc., Series 1997-3
* Bear Stearns Mortgage Securities, Inc., Series 1997-7
* CMC Securities Corporation III, Series 1997-2
* CWMBS, Inc. (Countrywide Home Loans), Series 1997-3
* CWMBS, Inc. (Countrywide Home Loans), Series 1997-8
* CWMBS, Inc. (Countrywide Home Loans), Series 1997-10 (ALT 1997-2)
* Impac Funding Corporation, Series 1997-2
* Residential Accredit Loans, Inc., Series 1997-QS10
* Residential Accredit Loans, Inc., Series 1997-QS11
* Residential Accredit Loans, Inc., Series 1997-QS12
* Residential Accredit Loans, Inc., Series 1997-QS13
* Residential Funding Mortgage Securities I, Inc., Series 1997-S2
* Residential Funding Mortgage Securities I, Inc., Series 1997-S5
* Structured Asset Securities Corporation, Series 1997-4


Classes from the following series of CWABS Inc.'s RMPTC's were affirmed by S&P, reflecting credit enhancement percentages sufficient to support the current ratings and a relatively low level of losses.

* 1996-1
* 1998-2
* 1999-1
* 1999-2
* 1999-4



* 2000-1
* 2000-3
* 2000-4
* 2001-1
* 2001-2



* 2001-3
* 2001-4
* 2001-BC1
* 2001-BC2
* 2001-BC3

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