Fitch takes rating actions on the following First
Franklin Financial Corporation residential mortgage-backed
certificates:
Series 2001-FF2
-- Classes A-1 and A-2 affirmed at 'AAA';
-- Class M-1 affirmed at 'AA';
-- Class M-2 downgraded to 'A-' from 'A';
-- Class M-3 downgraded to 'BBB-' from 'BBB'.
Series 2002-FF2
-- Classes A-1 and A-2 affirmed at 'AAA';
-- Class M-1 affirmed at 'AA';
-- Class M-2 downgraded to 'BBB-' from 'A';
-- Class M-3 downgraded to 'BB+' from 'BBB+'.
The affirmations, affecting approximately $53.1 million of the outstanding certificates, are taken as a result of a stable relationship between credit enhancement and expected loss. The downgrades, affecting approximately $5.6 million of the outstanding certificates, are taken as a result of a deteriorating relationship between credit enhancement and expected loss.
In February 2006, Series 2001-FF2 experienced a $247,920 loss, which exceeded excess spread and depleted a portion of the overcollateralization (OC). Since then, the transaction has struggled to grow OC and as of the April 2006 distribution date, is missing its $1,057,840 target by $231,499. The cumulative loss as a percentage of the original pool balance is 1.15% and the delinquency rate (including 60+, bankruptcy foreclosure, and REO) as a percentage of the current pool balance is 27.4%. The pool is 53 months seasoned and has a pool factor of 8%. As the transaction continues to season, losses are expected to increase relative to excess spread and OC will eventually decline.
In March 2006, Series 2002-FF2 experienced a $250,614 loss, which exceeded excess spread and depleted a portion of the overcollateralization (OC). Since then, the transaction has struggled to grow OC and as of the April 2006 distribution date, is missing its $783,627 target by $296,646. The cumulative loss as a percentage of the original pool balance is 0.70% and the delinquency rate (including 60+, bankruptcy foreclosure, and REO) as a percentage of the current pool balance is 21.0%. The pool is 43 months seasoned and has a pool factor of 9%. As the transaction continues to season, losses are expected to increase relative to excess spread and OC will eventually decline.
The collateral of the above transactions consists of subprime, fixed-rate mortgage loans (FRMs) and adjustable-rate mortgage loans (ARMs). In addition, the certificates are supported by two collateral groups, one consists of loans with principal balances that conform to Fannie Mae and Freddie Mac guidelines and the other consists of loans with principal balances that may or may not conform to Fannie Mae and Freddie Mac guidelines. Series 2001-FF2 is serviced by Option One Mortgage Corp., which is rated 'RPS1' by Fitch. Series 2002-FF2 is serviced by Saxon Mortgage Services Inc., which is rate 'RPS2+' by Fitch.
Further information regarding current delinquencies, losses and credit enhancement is available on the Fitch Ratings web site at www.fitchratings.com.
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.
Series 2001-FF2
-- Classes A-1 and A-2 affirmed at 'AAA';
-- Class M-1 affirmed at 'AA';
-- Class M-2 downgraded to 'A-' from 'A';
-- Class M-3 downgraded to 'BBB-' from 'BBB'.
Series 2002-FF2
-- Classes A-1 and A-2 affirmed at 'AAA';
-- Class M-1 affirmed at 'AA';
-- Class M-2 downgraded to 'BBB-' from 'A';
-- Class M-3 downgraded to 'BB+' from 'BBB+'.
The affirmations, affecting approximately $53.1 million of the outstanding certificates, are taken as a result of a stable relationship between credit enhancement and expected loss. The downgrades, affecting approximately $5.6 million of the outstanding certificates, are taken as a result of a deteriorating relationship between credit enhancement and expected loss.
In February 2006, Series 2001-FF2 experienced a $247,920 loss, which exceeded excess spread and depleted a portion of the overcollateralization (OC). Since then, the transaction has struggled to grow OC and as of the April 2006 distribution date, is missing its $1,057,840 target by $231,499. The cumulative loss as a percentage of the original pool balance is 1.15% and the delinquency rate (including 60+, bankruptcy foreclosure, and REO) as a percentage of the current pool balance is 27.4%. The pool is 53 months seasoned and has a pool factor of 8%. As the transaction continues to season, losses are expected to increase relative to excess spread and OC will eventually decline.
In March 2006, Series 2002-FF2 experienced a $250,614 loss, which exceeded excess spread and depleted a portion of the overcollateralization (OC). Since then, the transaction has struggled to grow OC and as of the April 2006 distribution date, is missing its $783,627 target by $296,646. The cumulative loss as a percentage of the original pool balance is 0.70% and the delinquency rate (including 60+, bankruptcy foreclosure, and REO) as a percentage of the current pool balance is 21.0%. The pool is 43 months seasoned and has a pool factor of 9%. As the transaction continues to season, losses are expected to increase relative to excess spread and OC will eventually decline.
The collateral of the above transactions consists of subprime, fixed-rate mortgage loans (FRMs) and adjustable-rate mortgage loans (ARMs). In addition, the certificates are supported by two collateral groups, one consists of loans with principal balances that conform to Fannie Mae and Freddie Mac guidelines and the other consists of loans with principal balances that may or may not conform to Fannie Mae and Freddie Mac guidelines. Series 2001-FF2 is serviced by Option One Mortgage Corp., which is rated 'RPS1' by Fitch. Series 2002-FF2 is serviced by Saxon Mortgage Services Inc., which is rate 'RPS2+' by Fitch.
Further information regarding current delinquencies, losses and credit enhancement is available on the Fitch Ratings web site at www.fitchratings.com.
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.