| Fitch Rates $452.3MM Merrill Lynch Mortgage Backed Securities ...
The 'AAA' rating on the senior certificates reflects the 4.25% subordination provided by the 2.00% M-1, the 0.75% class M-2, the 0.55% class M-3, the 0.40% non-offered class B-1, the 0.25% non-offered class B-2, and the 0.30% non-offered and non-rated class B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults, as well as bankruptcy, fraud, and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the capabilities of Wells Fargo Bank, N.A. (Well Fargo) as master servicer (rated 'RMS1' by Fitch). The mortgage pool consists primarily of 904 recently originated, adjustable rate, conventional, first lien, one- to four-family, residential mortgage loans, a substantial majority of which have original terms to maturity of 30 years.
LENDER FILES FOR CHAPTER 11
New Century Financial Corp., overwhelmed by rising defaults from borrowers with poor credit records, became the largest subprime mortgage lender ever to fail as it filed for bankruptcy Monday.
New Century plans to sell most of its assets within 45 days, according to the Chapter 11 filing in federal court in Wilmington, Del. About 3,200 people, more than half the work force at the Irvine, Calif.-based company, were fired.
New Century said it already agreed to sell its mortgage billing and collections unit to Carrington Capital Management LLC for $139 million.
The company rode the U.S. housing boom to become the largest independent mortgage lender to subprime borrowers, only to collapse as interest rates rose and home prices fell.
New Century's market value soared to more than $3.5 billion in December 2004, and last year it made about $60 billion in loans.
New Century, Biggest Subprime Casualty, Goes Bankrupt (Update3)
April 2 (Bloomberg) -- New Century Financial Corp., overwhelmed by rising defaults from borrowers with poor credit records, became the largest subprime mortgage lender ever to fail as it filed for bankruptcy today. New Century plans to sell most of its assets within 45 days, said the Chapter 11 filing in federal court in Wilmington, Delaware. About 3,200 people, more than half the workforce at the Irvine, California-based company, will be fired. New Century said it already agreed to sell its mortgage billing and collections unit to Carrington Capital Management LLC for $139 million. The company rode the U.S. housing boom to become the largest independent mortgage lender to subprime borrowers, only to collapse as interest rates rose and home prices fell. New Century's market value soared to more than $3.5 billion in December 2004, and last year it made about $60 billion in loans.
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