Fitch rates Residential Funding Mortgage Securities I,
Inc.'s (RFMSI) mortgage pass-through certificates, series 2006-SA2 as
follows:
-- $757,680,150 classes I-A, I-X, II-A-1, II-A-2, III-A-1, III-A-2, IV-A-1, IV-A-2, R-I, R-II and R-III certificates (senior certificates) 'AAA';
-- $17,805,000 class M-1 'AA';
-- $5,935,000 class M-2 'A';
-- $3,560,000 class M-3 'BBB';
-- $2,374,000 (privately offered) class B-1 'BB';
-- $1,979,000 (privately offered) class B-2 'B'.
The $1,978,444 (privately offered) class B-3 is not rated by Fitch.
The 'AAA' rating on the senior certificates reflects the 3.50% subordination provided by the 2.25% class M-1, the 0.75% class M-2, the 0.45% class M-3, the 0.30% privately offered class B-1, the 0.25% privately offered class B-2 and the 0.25% privately offered class B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Residential Funding Corp.'s (RFC) master servicing capabilities (rated 'RMS1' by Fitch).
As of the cut-off date, August 1, 2006, the mortgage pool consists of 1,815 hybrid adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of approximately $791,311,594. The mortgage pool has a weighted average original loan-to-value (OLTV) ratio of 71.84%. The weighted-average FICO score of the loans in the pool is 736, and approximately 66.4% of the mortgage loans possess FICO scores greater than or equal to 720 and 6.1% of the mortgage loans posses FICO scores less than 660. Loans originated under a reduced loan documentation program account for approximately 34.7% of the pool, equity refinance loans account for 28.9%, and second homes account for 4.9%. The average loan balance of the loans in the pool is approximately $ 435,984. The three states that represent the largest portion of the loans in the pool are California (41.5%), Virginia (8.5%) and Arizona(6.5%).
None of the mortgage loans were subject to the Home Ownership and Equity Protection Act of 1994. Furthermore, none of the mortgage loans in the pool are mortgage loans that are referred to as 'high-cost' or 'covered' loans or any other similar designation under applicable state or local law in effect at the time of origination of such loan if the law imposes greater restrictions or additional legal liability for residential mortgage loans with high interest rates, points and/or fees.
For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation,' available on the Fitch Ratings web site at 'www.fitchratings.com'.
All of the mortgage loans were initially purchased by Residential Funding from various unaffiliated sellers as described in this prospectus supplement and in the accompanying prospectus, except in the case of approximately 32.6% which were purchased from HomeComings Financial Network, Inc., a wholly-owned subsidiary of Residential Funding and approximately 33.4% which were purchased from GMAC Mortgage Corporation, an affiliate of Residential Funding.
U.S. Bank National Association will serve as trustee. RFMSI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as three real estate mortgage investment conduit (REMIC).
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.
-- $757,680,150 classes I-A, I-X, II-A-1, II-A-2, III-A-1, III-A-2, IV-A-1, IV-A-2, R-I, R-II and R-III certificates (senior certificates) 'AAA';
-- $17,805,000 class M-1 'AA';
-- $5,935,000 class M-2 'A';
-- $3,560,000 class M-3 'BBB';
-- $2,374,000 (privately offered) class B-1 'BB';
-- $1,979,000 (privately offered) class B-2 'B'.
The $1,978,444 (privately offered) class B-3 is not rated by Fitch.
The 'AAA' rating on the senior certificates reflects the 3.50% subordination provided by the 2.25% class M-1, the 0.75% class M-2, the 0.45% class M-3, the 0.30% privately offered class B-1, the 0.25% privately offered class B-2 and the 0.25% privately offered class B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Residential Funding Corp.'s (RFC) master servicing capabilities (rated 'RMS1' by Fitch).
As of the cut-off date, August 1, 2006, the mortgage pool consists of 1,815 hybrid adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of approximately $791,311,594. The mortgage pool has a weighted average original loan-to-value (OLTV) ratio of 71.84%. The weighted-average FICO score of the loans in the pool is 736, and approximately 66.4% of the mortgage loans possess FICO scores greater than or equal to 720 and 6.1% of the mortgage loans posses FICO scores less than 660. Loans originated under a reduced loan documentation program account for approximately 34.7% of the pool, equity refinance loans account for 28.9%, and second homes account for 4.9%. The average loan balance of the loans in the pool is approximately $ 435,984. The three states that represent the largest portion of the loans in the pool are California (41.5%), Virginia (8.5%) and Arizona(6.5%).
None of the mortgage loans were subject to the Home Ownership and Equity Protection Act of 1994. Furthermore, none of the mortgage loans in the pool are mortgage loans that are referred to as 'high-cost' or 'covered' loans or any other similar designation under applicable state or local law in effect at the time of origination of such loan if the law imposes greater restrictions or additional legal liability for residential mortgage loans with high interest rates, points and/or fees.
For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation,' available on the Fitch Ratings web site at 'www.fitchratings.com'.
All of the mortgage loans were initially purchased by Residential Funding from various unaffiliated sellers as described in this prospectus supplement and in the accompanying prospectus, except in the case of approximately 32.6% which were purchased from HomeComings Financial Network, Inc., a wholly-owned subsidiary of Residential Funding and approximately 33.4% which were purchased from GMAC Mortgage Corporation, an affiliate of Residential Funding.
U.S. Bank National Association will serve as trustee. RFMSI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as three real estate mortgage investment conduit (REMIC).
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.