Residential mortgage ratings actions for last week
By SAM GARCIA
2/5/2002

Fitch announced that it will now operate under the name 'Fitch Ratings'. Commenting on the new branding, Stephen W. Joynt, President and CEO of Fitch Ratings, said "our new logo communicates that Fitch Ratings is a singular company with a singular goal - Fitch Ratings will become the rating agency that investors rely on for prospective, unique and accurate credit insight."

Golden West Financial Corporation, parent of World Savings Bank, announced that Moody's Investors Service upgraded Golden West's long-term debt to A1 from A2 and World Savings' long-term deposits and other senior obligations to Aa3 from A1, reflecting the company's continued success in generating very strong risk-adjusted profitability while maintaining conservative risk management and a strong capital position. Moody's was quoted by Golden West as saying, "while pricing in both the mortgage business and for retail money market and time deposits is extremely competitive, the company has demonstrated an ability to gain market share and retain customers in both areas while maintaining and even enhancing its profitability. The company's efficiency is extremely strong, and it continues to make gains in this area."

Standard & Poor's (S&P) affirmed its ratings on MGIC Investment Corp. and its units following management's announcement that it intends for to repurchase up 5.5 million shares of its outstanding common stock. MGIC's capitalization is and will be well in excess of the triple-'A' floor set by S&P's risk-based capital adequacy model for U.S. residential mortgage insurers. S&P said its 'OUTLOOK' for MGIC's is 'STABLE' and that MGIC and its rated subsidiaries are collectively the strongest stand-alone mortgage insurance group.

As a result of low delinquencies, low losses, and increased credit support, Fitch said it upgraded various classes of the following series of residential mortgage-backed certificates.

* CWMBS (RAST 97-A9) mortgage pass-through certificates, series 1997-I
* CWMBS (Countrywide Home Loans, Inc.) mortgage pass-through certificates, series 1993-7 & series 1994-12
* FBS Mortgage Corporation mortgage pass-through certificates, series 1993-C & series 1993-F
* First Boston Mortgage Securities, Inc. mortgage pass-through certificates, series 1993-5 & series 1993-6
* GE Capital Mortgage Services, Inc. mortgage pass-through certificates, series 1993-7 FA, series 1993-7 TA, Series 1993-8 through Series 1993-19, series 1994-3, series 1994-4, series 1994-14, series 1998-3, series 1998-8 Pool 1 & 2, series 1998-9 and series 1999-1
* Kidder Peabody Acceptance Corp. I mortgage pass-through certificates, series 1993-1
* Norwest Asset Securities Corp. mortgage pass-through certificates, series 1998-4 Pool 1 & 2, series 1998-12, series 1998-15, series 1998-17, series 1998-25 and series 1998-26
* PNC Mortgage Securities Corp. mortgage pass-through certificates, series 1993-12
* Prudential Home Thirty Year Mortgage Trust, series 1993-L
* Residential Funding Mortgage Securities I, Inc. mortgage pass-through certificates, series 1993-S24
* Residential Funding Mortgage Securities I, Inc. mortgage pass-through certificates, series 1993-S26, series 1993-S28, series 1993-S29, series 1993-S31, series 1993-S34, series 1993-S35, series 1993-S37, series 1993-S39, series 1993-S40, series 1993-S41, series 1993-S43, series 1993-S44, series 1993-S47, series 1998-S17
* Ryland Mortgage Securities Corp. mortgage pass-through certificates, series 1993-4
* Salomon Brothers Mortgage Securities VII, Inc. mortgage pass-through certificates, series 1993-4
* Securitized Asset Sales, Inc. mortgage pass-through certificates, series 1993-2 and series 1993-7
* Sears Mortgage Securities Corp. mortgage pass-through certificates, series 1993-9 and series 1993-11

Fitch rated classes of Merrill Lynch Mortgage Investors, Inc., $314.1 million mortgage pass-through certificates, CDMC series 2002-A1, at 'AAA' to 'BBB', reflecting the level of subordination. On three groups of loans, the weighted average constructive loan-to-value ratio -- which is calculated as (i) the original loan amount less the amount of any required additional collateral, generally 30%, divided by (ii) the appraised value of the mortgaged property at origination, or if the loan is a purchase, the lesser of the appraised value and the purchase price of the mortgaged property -- was between 67% and 71%. The loans were originated by or in accordance with the guidelines of either Cendant or Merrill Lynch Credit Corporation.

Seventy-six classes of Washington Mutual Mortgage Loan Trusts' series 2000-3 and 2001-1 and Washington Mutual Mortgage Securities Corp.'s series 2001-2, 2001-3, 2001-5, and 2001-6 were affirmed by S&P. The affirmations are based on current credit support percentages that are sufficient to support the assigned ratings. The lack of realized cumulative losses coupled with negative amortization have caused current credit support percentages to increase in actual dollar amounts and as a percentage of the pool balances. It is foreseeable that the adjustable rate loans will experience higher rates while the payment adjustment lags by as much as one year, causing the interest differential to be capitalized.

Additionally, classes of Washington Mutual Mortgage Securities Corp. mortgage pass-through certificates, series 2002-MS1 were rated at 'AAA' to 'BBB', based on the level of subordination, the quality of the mortgage collateral and the strength of the legal and financial structures. Three groups of loans totaling $875.8 million have weighted average original loan-to-value ratio's (WAOLTV) of 70.4%, 69.1% and 67.1%. Cash-out refinance loans represented about one-quarter of the pools, and about half the loans are in California.

Fitch rated classes of Chase Mortgage Finance Trust's mortgage pass-through certificates, series 2002-S2, at 'AAA' to 'BBB', reflecting the levels of subordination, the quality of the mortgage collateral, strength of the legal and financial structures, and Chase Manhattan Mortgage Corporation servicing capabilities as primary servicer. The 15-year fixed-rate mortgage pool demonstrates a WAOLTV of 61.26% and a weighted average mortgage rate of 6.618%. Loans originated under a limited loan documentation program account for approximately 6.3% of the pool, and cash-out refinance loans account for 29.8%.

Classes of Structured Asset Securities Corporation $1.166 billion pass-through certificates, series 2002-1A, were rated at 'AAA' to 'BBB', reflecting the levels of subordination, the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Aurora Loan Services, Inc., which is currently rated 'RMS2+' by Fitch. Five pools of loans have WAOLTV's ranging from 59.3% to 78.1%, and weighted average coupons ranging from 5.698 percent to 6.650 percent. The majority of the aggregate pool balance is in California.

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