2008-08-29 00:26:01 -
- Fitch rates PHH Mortgage Trust, series 2008-CIM2 residential mortgage pass-through certificates, as follows:
--$142,766,357 classes 1-A-1, 1-A-2, 2-A-1, 2-A-2, 3-A-1, 3-A-2, 4-A-1, 4-A-2, 5-A-1, 5-A-2, A-X, 4-A-X, 5-A-X and A-PO 'AAA' ('senior certificates');
--$4,157,000 privately offered class B-1 'AA';
--$1,436,000 privately offered class B-2 'A';
--$604,000 privately offered class B-3 'BBB';
--$1,209,000 privately offered
class B-4 'BB'; and
--$303,000 privately offered class B-5 'B'.
This transaction closed on July 25, 2008.
The 'AAA' rating on the senior certificates reflects the 5.55% subordination provided by the 2.75% privately offered B-1 class, the 0.95% privately offered B-2 class, the 0.40% privately offered B-3 class, the 0.80% privately offered B-4 class, the 0.20% privately offered B-5 class and the 0.45% privately offered and non-rated B-6 class. Fitch believes the above credit enhancement will be sufficient to cover credit losses. 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 214 recently originated, fixed and 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. As of the cut-off date, the pool had an aggregate principal balance of approximately $151,155,361. The average loan balance is $706,333 and the weighted average original loan-to-value ratio (OLTV) for the mortgage loans in the pool is approximately 72.30%. The weighted average FICO credit score for the pool is approximately 749. Cash-out and rate/term refinance loans represent 17.86% and 31.28% of the pool, respectively. Second and investor-occupied homes account for 9.48% and 0.29% of the pool, respectively. The states that represent the largest geographic concentration are California (23.39%), Illinois (9.89%) and New Jersey (7.70%).
For federal income tax purposes, elections will be made to treat the trust fund as one or more real estate mortgage investment conduits (REMICs). LaSalle Bank, N.A. will act as Trustee and Wells Fargo Bank, N.A. will act as securities administrator and master servicer for the trust.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Rachel Brach, +1-212-908-0224
Roelof Slump, +1-212-908-0705
Sandro Scenga, +1-212-908-0278 (Media Relations)
