| Fitch Rates SAMI II $677.4MM Prime Mortgage Trust 2007-1
The 'AAA' rating on the senior certificates reflects the 4% subordination provided by the 1.60% class B-1, 0.80% class B-2, 0.50% class B-3, 0.50% privately offered class B-4, 0.35% privately offered class B-5 and 0.25% privately offered class B-6 (not rated by Fitch). 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 also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures and the primary servicing capabilities of the Master Servicer EMC Mortgage Corporation (rated 'RMS3+' by Fitch). The collateral consists of 1273 15- and 30-year fixed-rate mortgage loans totaling $679,112,102 as of the cut-off date (March 1, 2007), secured by first liens on one- to four-family residential properties.
Banks' housing pledge on track
Johannesburg - The country's major banks last week said they were confident they were going to meet their R42bn Financial Sector Charter commitment to finance low-cost housing. In March 2005, Housing Minister Lindiwe Sisulu, the Banking Association of South Africa and four banks signed a memorandum of understanding to extend finance to low income borrowers. The banks agreed to give households earning between R1 500 and R7 000 a month housing loans. A target of R42bn was set for home loans and investing in the building of new homes. With 18 months to go, the banks are confident they are on track. "At Standard Bank, we are confident the industry will meet the R42bn target by 2008," said Linda Sing, Standard Bank director of affordable housing.
Ecology calls for transparent best buy tables
The Ecology has urged the Financial Services Authority to make sure that best buy tables reflect the true cost of mortgages. Recent reports have revealed that mortgage application fees have nearly doubled since 2004. Many lenders exit fees have come in for criticism from the Financial Services Authority for being unnecessarily high, but some resulting reductions have been quietly recouped by increasing application fees. The best buy mortgage tables help lenders disguise their mortgage application fees, which are often hundreds and in some cases thousands of pounds. The society says these tables are based on the introductory interest rate only and not on the true cost of the mortgage over its lifetime. It says it would be fairer to potential borrowers and provide a more transparent comparison if the tables were based on the true cost of a mortgage over a period of years, taking into account all charges and fees incurred.
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