Fitch rates NovaStar Mortgage Funding Trust $1.343
billion home equity loan asset-backed notes, series 2006-1, as
follows:
-- $1.1 billion classes A-1A, A-2A, A-2B, A-2C, and A-2D 'AAA';
-- $78.3 million class M-1 'AA+';
-- $21.6 million class M-2 'AA';
-- $18.9 million class M-3 'AA';
-- $18.2 million class M-4 'A+';
-- $12.8 million class M-5 'A+';
-- $10.1 million class M-6 'A';
-- $8.8 million class M-7 'A-';
-- $7.4 million class M-8 'BBB+';
-- $8.8 million class M-9 'BBB'.
The 'AAA' rating on the class A certificates reflects the 15.20% total credit enhancement provided by the 5.80% class M-1, the 1.60% class M-2, the 1.40% class M-3, the 1.35% class M-4, the 0.95% class M-5, the 0.75% class M-6, the 0.65% class M-7, the 0.55% class M-8, the 0.65% privately offered class M-9, the 0.50% privately offered class M-10, and the 0.50% privately offered class M-11, as well as the 0.50% initial and target overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of NovaStar Mortgage Inc. as Servicer. JPMorgan Chase Bank, NA rated A+ by Fitch, will act as Indenture Trustee.
On the closing date, the trust fund will consist of a pool of first and second lien, adjustable and fixed rate, fully amortizing and balloon, residential mortgage loans with a total principal balance as of the cut-off date, April 1, 2006, of approximately $1,349,999,494. For the purpose of distributing principal and interest, the mortgage pool will be segregated into two mortgage loan groups.
The Group 1 mortgage pool consists of adjustable-rate and fixed-rate, conforming, first and second lien mortgage loans with a cut-off date pool balance of $904,573,565. Approximately 18.34% of the mortgage loans are fixed rate mortgage loans and 81.66% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 8.597%. The weighted average remaining term to maturity is 353 months. The average principal balance of the loans is approximately $159,284. The weighted average combined loan-to-value ratio is 78.81%. The properties are primarily located in Florida (23.34%), California (14.61%) and Maryland (7.53%).
The Group 2 mortgage pool consists of adjustable-rate and fixed-rate, non-conforming, first and second lien mortgage loans with a cut-off date pool balance of $445,425,930. Approximately 12.71% of the mortgage loans are fixed rate mortgage loans and 87.29% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 8.684%. The weighted average remaining term to maturity is 343 months. The average principal balance of the loans is approximately $202,007. The weighted average combined loan-to-value ratio is 84.28%. The properties are primarily located in California (29.22%) and Florida (26.36%).
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.
-- $1.1 billion classes A-1A, A-2A, A-2B, A-2C, and A-2D 'AAA';
-- $78.3 million class M-1 'AA+';
-- $21.6 million class M-2 'AA';
-- $18.9 million class M-3 'AA';
-- $18.2 million class M-4 'A+';
-- $12.8 million class M-5 'A+';
-- $10.1 million class M-6 'A';
-- $8.8 million class M-7 'A-';
-- $7.4 million class M-8 'BBB+';
-- $8.8 million class M-9 'BBB'.
The 'AAA' rating on the class A certificates reflects the 15.20% total credit enhancement provided by the 5.80% class M-1, the 1.60% class M-2, the 1.40% class M-3, the 1.35% class M-4, the 0.95% class M-5, the 0.75% class M-6, the 0.65% class M-7, the 0.55% class M-8, the 0.65% privately offered class M-9, the 0.50% privately offered class M-10, and the 0.50% privately offered class M-11, as well as the 0.50% initial and target overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of NovaStar Mortgage Inc. as Servicer. JPMorgan Chase Bank, NA rated A+ by Fitch, will act as Indenture Trustee.
On the closing date, the trust fund will consist of a pool of first and second lien, adjustable and fixed rate, fully amortizing and balloon, residential mortgage loans with a total principal balance as of the cut-off date, April 1, 2006, of approximately $1,349,999,494. For the purpose of distributing principal and interest, the mortgage pool will be segregated into two mortgage loan groups.
The Group 1 mortgage pool consists of adjustable-rate and fixed-rate, conforming, first and second lien mortgage loans with a cut-off date pool balance of $904,573,565. Approximately 18.34% of the mortgage loans are fixed rate mortgage loans and 81.66% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 8.597%. The weighted average remaining term to maturity is 353 months. The average principal balance of the loans is approximately $159,284. The weighted average combined loan-to-value ratio is 78.81%. The properties are primarily located in Florida (23.34%), California (14.61%) and Maryland (7.53%).
The Group 2 mortgage pool consists of adjustable-rate and fixed-rate, non-conforming, first and second lien mortgage loans with a cut-off date pool balance of $445,425,930. Approximately 12.71% of the mortgage loans are fixed rate mortgage loans and 87.29% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 8.684%. The weighted average remaining term to maturity is 343 months. The average principal balance of the loans is approximately $202,007. The weighted average combined loan-to-value ratio is 84.28%. The properties are primarily located in California (29.22%) and Florida (26.36%).
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.
© 2006 Business Wire
