MOODY'S RATES CHEC LOAN TRUST 2004-1 SUBPRIME MORTGAGE DEAL Aaa
Approximately $306.3 Millions of Asset-Backed Certificates Rated.
New York, September 29, 2004 -- Moody's Investors Service has assigned a rating of Aaa to the senior certificates
in CHEC Loan Trust 2004-1 securitization. In addition,
Moody's also assigned ratings ranging from Aa1 to Ba2 to the subordinate
certificates issued in the transaction. The ratings are based primarily
on the credit quality of the loans, and on the protection from subordination,
overcollateralization (OC) and excess spread
The mortgage loans included in the trust were acquired by Greenwich Capital
Financial Products, Inc. from Centex Home Equity Company,
LLC (Centex). The pool consists of first and second lien,
adjustable-rate (ARM-64%) and fixed-rate (FRM-36%)
subprime mortgage loans. The credit quality of the loans is about
average for sub-prime mortgages. While Centex's collaterals
generally have slightly weaker than average FICO and slightly higher percentage
of second liens, the pool's strong aspects include a higher-than-average
percentage of single-family and owner-occupied properties,
as well as loans underwritten with full documentation standards.
Other positive trends of the pool include slightly better FICOs in the
FRM collateral, and the average loan balance for both FRM and ARM
pool has increased compared to the recent Centex's securitizations.
Higher loan balance reduces the severity on the loans which default.
Centex Home Equity Company, LLC, a wholly-owned subsidiary
of Centex Financial Services, Inc., which is a subsidiary
of Centex Corporation (long term senior unsecured obligations rated Baa2
and commercial paper rated P-2 by Moody's), will be
the servicer for the transaction. Centex is a subprime mortgage
lender based in Dallas, Texas.
The complete rating actions are as follows:
Depositor: Financial Asset Securities Corp.
Securities: CHEC Loan Trust 2004-1, Asset-Backed
Certificates, Series 2004-1
Originator and Servicer: Centex Home Equity Company, LLC
Class A-1, $80,000,000, Variable,
Rated Aaa
Class A-2, $140,000,000, Variable,
Rated Aaa
Class A-3, $32,157,000, Variable,
Rated Aaa
Class M-1, $9,746,000, Variable,
Rated Aa1
Class M-2, $8,818,000, Variable,
Rated Aa2
Class M-3, $5,569,000, Variable,
Rated Aa3
Class M-4, $4,796,000, Variable,
Rated A1
Class M-5, $4,486,000, Variable,
Rated A2
Class M-6, $4,486,000, Variable,
Rated A3
Class M-7, $3,713,000, Variable,
Rated Baa1
Class M-8, $3,249,000, Variable,
Rated Baa2
Class M-9, $3,094,000, Variable,
Rated Baa3
Class B-1, $3,094,000, Variable,
Rated Ba1
Class B-2, $3,094,000, Variable,
Rated Ba2
Additional research is available on http://www.moodys.com.
New York
Pramila Gupta
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Rachel Peng
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653