Fitch has rated the Soundview Home Loan Trust, asset-backed certificates, series 2007-OPT1, which closed on May 15, 2007 as follows:
--$1.74 billion classes I-A-1, II-A-1 through II-A-4, and X 'AAA';
--$104.48 million class M-1 'AA+';
--$105.64 million class M-2 'AA';
--$44.11 million class M-3 'AA-';
--$42.95 million class M-4 'A+';
--$38.31 million class M-5 'A';
--$32.51 million class M-6 'A-';
--$27.86 million class M-7 'BBB+';
--$13.93 million class M-8 'BBB';
--$44.11 million classes M-9 'BBB-';
--$35.99 million privately offered class M-10 'BB+'.
The 'AAA' rating on the senior certificates reflects the 24.95% total credit enhancement provided by the 4.50% class M-1, 4.55% class M-2, 1.90% class M-3, 1.85% class M-4, 1.65% class M-5, 1.40% class M-6, 1.20% class M-7, 0.60% class M-8, 1.90% class M-9, 1.55% class M-10 and 3.85% initial and target overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. In addition, the ratings reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Option One Mortgage Corporation as servicer (rated 'RPS1' by Fitch) and Wells Fargo Bank N.A. as trustee.
The group I mortgage pool consists of adjustable- and fixed-rate, first and second lien mortgage loans with a cut-off date pool balance of $1,232,752,973. Approximately 30.13% of the mortgage loans are fixed-rate mortgage loans, 69.87% are adjustable-rate mortgage loans, and 1.95% are second lien mortgage loans. The weighted average loan rate is approximately 8.517%. The weighted average remaining term to maturity (WAM) is 358 months. The average principal balance of the loans is approximately $194,932. The weighted average combined loan-to-value ratio (CLTV) is 79.95%. The properties are primarily located in California (22.24%), Florida (11.01%) and New York (8.08%).
The group II mortgage pool consists of adjustable- and fixed-rate, first and second lien mortgage loans with a cut-off date pool balance of $1,089,033,232. Approximately 21.96% of the mortgage loans are fixed-rate mortgage loans, 78.04% are adjustable-rate mortgage loans, and 6.95% are second lien mortgage loans. The weighted average loan rate is approximately 8.555%. The WAM is 357 months. The average principal balance of the loans is approximately $242,330. The weighted average CLTV is 83.70%. The properties are primarily located in California (37.00%), Florida (10.04%) and New York (8.92%).
All of the mortgage loans were originated by Option One Mortgage Corporation. Incorporated in 1992, Option One began originating and servicing subprime loans in February 1993. Option One is a subsidiary of Block Financial, which is a subsidiary of H&R Block, Inc.
For federal income tax purposes, multiple real estate mortgage investment conduit (REMIC) elections will be made with respect to the trust estate.
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.
