Long Beach Securities Corporation's asset-backed
certificates, series 2006-7, composed of two groups, are rated by
Fitch Ratings as follows:
-- $1.29 billion classes I-A, II-A1, II-A2, II-A3, and II-A4 (senior certificates) 'AAA';
-- $51.09 million class M-1 'AA+';
-- $47.89 million class M-2 'AA+';
-- $29.53 million class M-3 'AA';
-- $26.34 million class M-4 'AA-';
-- $25.54 million class M-5 'A'+;
-- $20.75 million class M-6 'A';
-- $15.96 million class M-7 'A-';
-- $15.96 million class M-8 'BBB+';
-- $11.17 million class M-9 'BBB';
-- $11.17 million class M-10 'BBB-';
-- $15.96 million class M-11 'BB+'.
Group I and II mortgage loans consists of first and second lien, adjustable-rate and fixed-rate residential mortgage loans. Group I mortgage loans have principal balances that conform to Fannie Mae and Freddie Mac loan limits. Group II mortgage loans have principal balances that may or may not conform to Fannie Mae and Freddie Mac loan limits. All groups consist of mortgage loans with original terms to maturity of not more than 40 years.
The groups I and II 'AAA' rating on the senior certificates reflects the 19.15% credit enhancement provided by the 3.20% class M-1, 3.00% class M-2, 1.85% class M-3, 1.65% class M-4, 1.60% class M-5, 1.30% class M-6, 1.00% class M-7, 1.00% class M-8, 0.70% class M-9, 0.70% class M-10, 1.00% class M-11, as well as the 2.15% over-collateralization (OC).
Additionally, all classes have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Washington Mutual Bank's servicing capabilities as servicer.
As of the cut-off date, the group I mortgage loans have an aggregate balance of $445,440,709. Approximately 2.95% of the group I loans are second lien mortgages. The weighted average mortgage rate is approximately 8.441% and the weighted average remaining term to maturity is 390 months. The average cut-off date principal balance of the mortgage loans is $155,585. The weighted average original loan-to-value ratio (OLTV) is 79.79% and the weighted average Fair, Isaac & Co. (FICO) score is 619. The properties are primarily located in California (25.98%), Florida (12.09%), Texas (7.00%), Washington (6.18%), Illinois (5.55%), and Maryland (5.01%). All other states represent less than 5% of the pool as of the cut-off date.
As of the cut-off date, the group II mortgage loans have an aggregate balance of $1,151,173,484. Approximately 6.33% of the group II loans are second lien mortgages. The weighted average mortgage rate is approximately 8.364% and the weighted average remaining term to maturity is 387 months. The average cut-off date principal balance of the mortgage loans is $248,258. The weighted average OLTV is 81.18% and the weighted average FICO score is 645. The properties are primarily located in California (44.79%) and Florida (11.35%). All other states represent less than 5% of the pool as of the cut-off date.
All the mortgage loans were either originated by the sponsor (Washington Mutual Bank) through Long Beach Mortgage, a division of Washington Mutual Bank or purchased by the sponsor through Long Beach Mortgage, a division of Washington Mutual Bank, and deposited into the trust, which issued the certificates. For federal income tax purposes, one or more elections will be made to treat the trust fund as a 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.
-- $1.29 billion classes I-A, II-A1, II-A2, II-A3, and II-A4 (senior certificates) 'AAA';
-- $51.09 million class M-1 'AA+';
-- $47.89 million class M-2 'AA+';
-- $29.53 million class M-3 'AA';
-- $26.34 million class M-4 'AA-';
-- $25.54 million class M-5 'A'+;
-- $20.75 million class M-6 'A';
-- $15.96 million class M-7 'A-';
-- $15.96 million class M-8 'BBB+';
-- $11.17 million class M-9 'BBB';
-- $11.17 million class M-10 'BBB-';
-- $15.96 million class M-11 'BB+'.
Group I and II mortgage loans consists of first and second lien, adjustable-rate and fixed-rate residential mortgage loans. Group I mortgage loans have principal balances that conform to Fannie Mae and Freddie Mac loan limits. Group II mortgage loans have principal balances that may or may not conform to Fannie Mae and Freddie Mac loan limits. All groups consist of mortgage loans with original terms to maturity of not more than 40 years.
The groups I and II 'AAA' rating on the senior certificates reflects the 19.15% credit enhancement provided by the 3.20% class M-1, 3.00% class M-2, 1.85% class M-3, 1.65% class M-4, 1.60% class M-5, 1.30% class M-6, 1.00% class M-7, 1.00% class M-8, 0.70% class M-9, 0.70% class M-10, 1.00% class M-11, as well as the 2.15% over-collateralization (OC).
Additionally, all classes have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Washington Mutual Bank's servicing capabilities as servicer.
As of the cut-off date, the group I mortgage loans have an aggregate balance of $445,440,709. Approximately 2.95% of the group I loans are second lien mortgages. The weighted average mortgage rate is approximately 8.441% and the weighted average remaining term to maturity is 390 months. The average cut-off date principal balance of the mortgage loans is $155,585. The weighted average original loan-to-value ratio (OLTV) is 79.79% and the weighted average Fair, Isaac & Co. (FICO) score is 619. The properties are primarily located in California (25.98%), Florida (12.09%), Texas (7.00%), Washington (6.18%), Illinois (5.55%), and Maryland (5.01%). All other states represent less than 5% of the pool as of the cut-off date.
As of the cut-off date, the group II mortgage loans have an aggregate balance of $1,151,173,484. Approximately 6.33% of the group II loans are second lien mortgages. The weighted average mortgage rate is approximately 8.364% and the weighted average remaining term to maturity is 387 months. The average cut-off date principal balance of the mortgage loans is $248,258. The weighted average OLTV is 81.18% and the weighted average FICO score is 645. The properties are primarily located in California (44.79%) and Florida (11.35%). All other states represent less than 5% of the pool as of the cut-off date.
All the mortgage loans were either originated by the sponsor (Washington Mutual Bank) through Long Beach Mortgage, a division of Washington Mutual Bank or purchased by the sponsor through Long Beach Mortgage, a division of Washington Mutual Bank, and deposited into the trust, which issued the certificates. For federal income tax purposes, one or more elections will be made to treat the trust fund as a 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.