HomeSide Out From Under

A look at last week\'s residential mortgage ratings activity
By SAM GARCIA
3/12/2002

Fitch Ratings withdrew its 'F1+' commercial paper rating for HomeSide Lending Inc., as the company has terminated its commercial paper program and all outstanding commercial paper has been repaid following the sale of HomeSide assets to Washington Mutual, Inc.

Salomon Smith Barney said it started coverage of government sponsored housing enterprises Fannie Mae and Freddie Mac with "buy" ratings, according to Reuters. "We believe 7% to 8% annual mortgage market growth remains, and that Fannie Mae and Freddie Mac are poised to continue their above-market growth rates," analyst Matthew Vetto was quoted as saying in a research note.

Fitch announced that it placed classes of PNC Mortgage Securities Corp. mortgage pass-through certificates on Rating Watch Negative due to the high level of delinquencies in relation to the applicable credit support levels as of the Feb. 25, 2002 distribution.

Standard & Poor's (S&P) said it affirmed its 'A+' counterparty credit and financial strength ratings on residential mortgage insurer California Housing Loan Insurance Fund because of its strong capitalization, solid operating performance, and the support of the California Housing Finance Agency. S&P also said the outlook for CaHLIF is stable. The company exists to facilitate home ownership in California by insuring the mortgages of worthy borrowers who normally don't have the financial means to qualify for underwriting by commercial mortgage insurers.

C-BASS announced that it has closed on a transaction backed by approximately $235 million of residential mortgage collateral. The Certificates are rated by Moody's, S&P and Fitch at Aaa/AAA/AAA to Baa3/BB/BB. The FHA, VA and conventional loans are serviced by Litton Loan Servicing LP.

Fitch downgraded classes of CWMBS (IndyMac), Series 1994-N due to the level of losses incurred and the high delinquencies in relation to the applicable credit support levels as of the January 25, 2002 distribution.

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