Mostly Mutual

Last week\'s residential mortgage ratings actions
By MortgageDaily.com staff
12/18/2001

At GE Capital Mortgage Services, Inc.'s request, Fitch has withdrawn its residential primary servicer ratings for prime, Alt-A, and subprime products.

Standard & Poor's (S&P) is monitoring HomeSide Lending Inc.'s Strong Select Servicer ranking, which is expected to be withdrawn due to its announced subservicing agreement and sale of operating assets to Washington Mutual. Under the terms of the agreement, Washington Mutual will subservice HomeSide's residential mortgage portfolio of more than two million customers. In addition, Washington Mutual will acquire HomeSide's operating assets including its mortgage servicing technology and multiple servicing sites in Florida and Texas. Washington Mutual Bank, F.A., a subsidiary of Washington Mutual, is currently listed as a Standard & Poor's Select Servicer for residential prime and subprime mortgage loans, but has not been assigned a formal servicer evaluation ranking as of this time.

Homecomings Financial(SM) announced today that Fitch upgraded its RPS1 and RSS1 residential servicer ratings for subprime and special servicing; RPS1 ratings for home equity/home equity line-of-credit (HELOC) and high loan-to-value (HLTV) products; and a RMS1 master servicer rating. Fitch also affirmed Homecomings Financial's RPS1 residential primary servicer ratings for prime and Alternative-A products.

Fitch upgraded various classes of the following series as a result of low delinquencies and losses, as well as increased credit support.

* Bank of America Mortgage Securities Inc., mortgage pass-through certificates, series 1998-5
* CWMBS (Countrywide Home Loans Inc.), mortgage pass-through certificates, series 1994-4
* GE Capital Mortgage Services Inc., REMIC multi-class pass- through certificates series 1996-8 Pool 1

Classes of Washington Mutual Mortgage Securities Corp. (WAMU) mortgage pass-through certificates, series 2001-AR6 were rated at'AAA' by Fitch. The ratings reflect the credit enhancement, quality of the mortgage collateral, strength of the legal and financial structures, and WAMU's servicing capabilities as master servicer. The trust consists of 1,347 conventional, fully amortizing 30-year adjustable rate mortgages (ARM's) with an aggregate original principal balance of $814.8 million. The WAOLTV is 64.10%, and 64.3% of the loans have FICO scores in excess of 720. Two-thirds of the loans are in California.

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