New York, December 14, 2018 -- Moody's Investors Service has upgraded the ratings of 25 tranches and
downgraded the rating of one tranche from 16 deals backed by manufactured
housing RMBS loans issued from 1998 to 2007.
Complete rating actions are as follows:
Issuer: Green Tree Financial Corporation MH 1998-04
A-5 Certificate, Upgraded to Aa1 (sf); previously on
Feb 12, 2018 Upgraded to A3 (sf)
A-6 Certificate, Upgraded to Aa1 (sf); previously on
Feb 12, 2018 Upgraded to A3 (sf)
A-7 Certificate, Upgraded to Aa1 (sf); previously on
Feb 12, 2018 Upgraded to A3 (sf)
Issuer: Green Tree Financial Corporation MH 1998-05
A-1 Certificate, Upgraded to Aa1 (sf); previously on
Feb 12, 2018 Upgraded to A3 (sf)
Issuer: Green Tree Financial Corporation MH 1998-07
A-1 Certificate, Upgraded to Aa1 (sf); previously on
Feb 12, 2018 Upgraded to A1 (sf)
Issuer: Green Tree Financial Corporation MH 1998-08
A-1 Certificate, Upgraded to A3 (sf); previously on
Mar 19, 2018 Upgraded to Baa3 (sf)
Issuer: Mid-State Capital Corporation 2004-1 Trust
Cl. A Notes, Upgraded to Aa1 (sf); previously on Apr
13, 2017 Upgraded to A1 (sf)
Cl. M-1 Notes, Upgraded to Aa2 (sf); previously
on Apr 13, 2017 Upgraded to A2 (sf)
Cl. M-2 Notes, Upgraded to Aa3 (sf); previously
on Apr 13, 2017 Upgraded to Baa1 (sf)
Cl. B Notes, Upgraded to A1 (sf); previously on Apr
13, 2017 Upgraded to Baa2 (sf)
Issuer: Mid-State Capital Corporation 2006-1 Trust
Cl. A Notes, Upgraded to A1 (sf); previously on Apr
13, 2017 Upgraded to A3 (sf)
Cl. M-1 Notes, Upgraded to A2 (sf); previously
on Apr 13, 2017 Upgraded to Baa1 (sf)
Cl. M-2 Notes, Upgraded to Baa1 (sf); previously
on Apr 13, 2017 Upgraded to Ba2 (sf)
Cl. B Notes, Upgraded to Ba2 (sf); previously on Apr
13, 2017 Upgraded to Caa1 (sf)
Issuer: Mid-State Trust XI
Cl. M-2 Notes, Upgraded to Baa3 (sf); previously
on Jun 1, 2011 Downgraded to Ba1 (sf)
Cl. B Notes, Upgraded to Ba1 (sf); previously on Jun
1, 2011 Confirmed at B1 (sf)
Issuer: Oakwood Mortgage Investors, Inc. Series 1998-A
M Certificate, Upgraded to Aa3 (sf); previously on Mar 2,
2018 Upgraded to Baa1 (sf)
Issuer: Oakwood Mortgage Investors, Inc., Series
1999-B
A-4 Certificate, Upgraded to Ba1 (sf); previously on
Apr 5, 2016 Upgraded to B3 (sf)
Issuer: OMI Trust 2001-B
Cl. A-3 Certificate, Upgraded to Aaa (sf); previously
on Mar 9, 2018 Upgraded to Aa2 (sf)
Cl. A-4 Certificate, Upgraded to Aaa (sf); previously
on Mar 9, 2018 Upgraded to Aa2 (sf)
Issuer: OMI Trust 2002-A
Cl. A-4 Certificate, Upgraded to Aa3 (sf); previously
on Mar 9, 2018 Upgraded to A3 (sf)
Issuer: OMI Trust 2002-B
Cl. A-4 Certificate, Upgraded to A1 (sf); previously
on Mar 9, 2018 Upgraded to Baa1 (sf)
Issuer: OMI Trust 2002-C
Cl. A-1 Certificate, Upgraded to Aa3 (sf); previously
on Mar 2, 2018 Upgraded to Baa1 (sf)
Issuer: Origen Manufactured Housing Contract Trust Collateralized
Notes, Series 2007-A
Cl. A-1 Certificate, Upgraded to B3 (sf); previously
on Dec 16, 2011 Downgraded to Caa3 (sf)
Issuer: UCFC Funding Corporation 1998-1
M Certificate, Downgraded to C (sf); previously on Sep 28,
2004 Downgraded to Ca (sf)
Issuer: UCFC Funding Corporation 1998-2
A-4 Certificate, Upgraded to A1 (sf); previously on
Mar 19, 2018 Upgraded to Baa1 (sf)
RATINGS RATIONALE
The actions reflect the recent performance of the underlying pools and
reflect Moody's updated loss expectations on the pools. The ratings
upgraded are a result of improving performance of the related pools and/or
an increase in credit enhancement available to the bonds. The rating
downgraded is due to the weaker performance of the underlying collateral
and the erosion of enhancement available to the bond.
The principal methodology used in these ratings was "US RMBS Surveillance
Methodology" published in January 2017. Please see the Rating Methodologies
page on www.moodys.com for a copy of this methodology.
The Credit Ratings for above mentioned deals were assigned in accordance
with Moody's existing Methodology entitled "US RMBS Surveillance Methodology,"
dated 1/31/2017. Please note that on 11/14/2018, Moody's
released a Request for Comment, in which it has requested market
feedback on potential revisions to its Methodology for pre-2009
US RMBS. Prime Jumbo, Alt-A, Option ARM,
Subprime, Scratch and Dent, Second Lien and Manufactured Housing
transactions. If the revised Methodology is implemented as proposed,
the Credit Ratings on above mentioned deals are not expected to be affected.
Please refer to Moody's Request for Comment, titled "Proposed Update
to US RMBS Surveillance Methodology," for further details regarding
the implications of the proposed Methodology revisions on certain Credit
Ratings.
Factors that would lead to an upgrade or downgrade of the ratings:
Ratings in the US RMBS sector remain exposed to macroeconomic uncertainty,
and in particular the unemployment rate. The unemployment rate
fell to 3.7% in November 2018 from 4.1% in
November 2017. Moody's forecasts an unemployment central range
of 3.5% to 4.5% for the 2018 year.
Deviations from this central scenario could lead to rating actions in
the sector. House prices are another key driver of US RMBS performance.
Moody's expects house prices to continue to rise in 2018. Lower
increases than Moody's expects or decreases could lead to negative rating
actions. Finally, performance of RMBS continues to remain
highly dependent on servicer procedures.
A list of these actions including CUSIP identifiers and the associated
pool losses and tranche recoveries may be found at:
Excel: http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF476257
For more information please see www.moodys.com.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and sensitivity
analysis, see the sections Methodology Assumptions and Sensitivity
to Assumptions of the disclosure form.
The analysis includes an assessment of collateral characteristics and
performance to determine the expected collateral loss or a range of expected
collateral losses or cash flows to the rated instruments. As a
second step, Moody's estimates expected collateral losses or cash
flows using a quantitative tool that takes into account credit enhancement,
loss allocation and other structural features, to derive the expected
loss for each rated instrument.
Moody's quantitative analysis entails an evaluation of scenarios
that stress factors contributing to sensitivity of ratings and take into
account the likelihood of severe collateral losses or impaired cash flows.
Moody's weights the impact on the rated instruments based on its
assumptions of the likelihood of the events in such scenarios occurring.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Yang Yang
Associate Lead Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Deepika Kothari
Senior Vice President
Structured Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653