MOODY'S RATE VANDERBILT 2000-A DEAL Aaa
Moody's Investors Service has assigned ratings to the certificates issued in the Vanderbilt Mortgage and Finance, Inc., Manufactured Housing Contract Pass-Through Certificates, Series 2000A transaction. The assigned ratings ranged from Aaa on the senior classes of certificates to Baa2 on the most subordinated classes. The transaction is a securitization of both fixed and adjustable-rate manufactured housing loans, including some land/home contracts.
Moody's analyst, David Burkhalter, explained that the ratings assigned to the Series 2000-A certificates are based on the quality of the underlying loans, the credit support and amount of excess servicing available to cover losses, overcollateralization, the structure of the transaction, and the experience of Vanderbilt in servicing manufactured housing receivables. The class sizes, the subordination levels and the amount of the OC reflect the average overall quality of the pool and the benefit of the excess spread. Clayton Homes will provide a limited guaranty on the Class I B-2 and Class II B-3 certificates.
Moody's stated that the Group I (fixed rate) loans are more risky than those supporting the 1999-D deal. The relatively large percentage of bulk purchase loans is the primary driver of the greater credit risk of these loans. This resulted in an 8% increase in the percentage of single-wide units and the greater average seasoning of the pool. In addition, even without the presence of the purchased loans, the current pool has greater percentages of used and single-wide units and a higher number of repo-refinancings.
The loans backing the Group II (adjustable rate) certificates, on the other hand, are of better credit quality than those backing the 1999-D Group II certificates. The most significant improvements in the 2000-A Group II collateral are the higher percentages of new and double-wide units and the much lower percentage of repo-refinancings in the pool. Also contributing to the improvement in credit quality is a slight increase in the percentage of units on private land.
The Group I and Group II pools each support a corresponding group of certificates. Credit support within each group consists of excess servicing, subordination, and, in the case of the adjustable-rate group, overcollateralization. Excess servicing not needed within a group is available to cover losses incurred on the other pool.
The complete rating actions were as follows:
Vanderbilt Mortgage and Finance, Inc., Manufactured Housing Contract Senior/Subordinate Pass-Through Certificates, Series 2000A
$54MM, variable rate, Class I A-1 Certificates, rated Aaa
$33MM, 7.58%, Class I A-2 Certificates, rated Aaa
$32MM, 7.82%, Class I A-3 Certificates, rated Aaa
$27.189MM, 7.955%, Class I A-4 Certificates, rated Aaa
$9.137MM, 8.195%, Class I A-5 Certificates, rated Aa3
$7.31MM, 8.635%, Class I M-1 Certificates, rated A2
$7.31MM, 9.25%, Class I B-1 Certificates, rated Baa2
$12.792MM, 9.25%, Class I B-2 Certificates, rated Baa2
$68.577MM, variable rate, Class II A-1 Certificates, rated Aaa
$9.071MM, variable rate, Class II B-1 Certificates, rated Aa3
$4.867MM, variable rate, Class II B-2 Certificates, rated Baa2
$5.974MM, variable rate, Class II B-3 Certificates, rated Baa2
The Baa2 rating on Classes I B-2 and II B-3 reflects the benefit of excess servicing and the availability of a limited guarantee from Clayton Homes, Inc., the ultimate parent of Vanderbilt. Vanderbilt is a capable originator and servicer of manufactured housing loans. The company's principal office is in Maryville, Tennessee.
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