Fitch rates CWALT, Inc.'s (CWALT) mortgage pass-through
certificates, alternative loan trust 2006-29T1 as follows:
-- $746.83 million classes 1-A-1 through 1-A-7, 2-A-1 through 2-A-25, 3-A-1 through 3-A-9, 1-X, 2-X, 3-X, PO, and A-R certificates (senior certificates) 'AAA';
-- $18.67 million class M-1 certificates 'AA+';
-- $5.16 million class M-2 certificates 'AA';
-- $4.37 million class M-3 certificates 'A+';
-- $3.58 million class M-4 certificates 'A';
-- $1.59 million class M-5 certificates 'A-';
-- $4.37 million class B-1 certificates 'BBB';
-- $1.19 million class B-2 certificates 'BBB-';
-- $2.78 million class B-3 certificates 'BB';
-- $3.18 million class B-4 certificates 'B'.
The 'AAA' rating on the senior certificates reflects the 6% subordination provided by the 2.35% class M-1, the 0.65% class M-2, the 0.55% class M-3, the 0.45% class M-4, the 0.20% class M-5, the 0.55% class B-1, the 0.15% class B-2, the 0.35% privately offered class B-3, the 0.40% privately offered class B-4 and the 0.35% privately offered Class B-5 (not rated by Fitch). Classes M-1, M-2, M-3, M-4, M-5, B-1, B-2, B-3 and B-4 are rated 'AA+', 'AA' , 'A+' , 'A' , 'A-', 'BBB', 'BBB-', 'BB' and 'B' based on their respective subordination only.
Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing), rated 'RMS2+' by Fitch, a direct wholly owned subsidiary of Countrywide Home Loans, Inc. (CHL).
The mortgage pool consists of three loans groups. Loan Group 1 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $105,999,936 as of the cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 73.98%. The weighted average FICO credit score is approximately 703. Cash-out refinance loans represent 38.21% of the mortgage pool and second homes 5.79%. The average loan balance is $616,279. The three states that represent the largest portion of mortgage loans are California (37.29%), Florida (7.18%), and Washington (6%).
Loan Group 2 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $340,319,460 as of the cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 74.68%. The weighted average FICO credit score is approximately 704. Cash-out refinance loans represent 38.43% of the mortgage pool and second homes 7.20%. The average loan balance is $633,742. The three states that represent the largest portion of mortgage loans are California (36.63%), New York (9.62%), and Florida (6.11%).
Loan Group 3 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $250,207,485 as of the cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 75.10%. The weighted average FICO credit score is approximately 712. Cash-out refinance loans represent 30.42% of the mortgage pool and second homes 6.33%. The average loan balance is $669,004. The three states that represent the largest portion of mortgage loans are California (35.96%), Florida (6.15%), and New Jersey (5.87%).
Approximately 50.21% and 49.79% of the Group 1 mortgage loans, 36.10% and 63.90% of the Group 2 mortgage loans, and 13.53% and 86.47% of the Group 3 mortgage loans were originated under CHL's Standard Underwriting Guidelines and Expanded Underwriting Guidelines, respectively. Mortgage loans underwritten pursuant to the Expanded Underwriting Guidelines may have higher loan-to-value ratios, higher loan amounts, higher debt-to-income ratios and different documentation requirements than those associated with the Standard Underwriting Guidelines. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for the presence of these attributes.
The depositor will also deposit approximately $42,680,539 and $55,292,515, with respect to Group 2 and Group 3, respectively, into a pre-funding account on the closing date. The amounts in the pre-funding account will be used to purchase supplemental mortgage loans for Group 2 and Group 3 after the closing date and on or prior to September 30, 2006.
CWALT purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits (REMICs).
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.
-- $746.83 million classes 1-A-1 through 1-A-7, 2-A-1 through 2-A-25, 3-A-1 through 3-A-9, 1-X, 2-X, 3-X, PO, and A-R certificates (senior certificates) 'AAA';
-- $18.67 million class M-1 certificates 'AA+';
-- $5.16 million class M-2 certificates 'AA';
-- $4.37 million class M-3 certificates 'A+';
-- $3.58 million class M-4 certificates 'A';
-- $1.59 million class M-5 certificates 'A-';
-- $4.37 million class B-1 certificates 'BBB';
-- $1.19 million class B-2 certificates 'BBB-';
-- $2.78 million class B-3 certificates 'BB';
-- $3.18 million class B-4 certificates 'B'.
The 'AAA' rating on the senior certificates reflects the 6% subordination provided by the 2.35% class M-1, the 0.65% class M-2, the 0.55% class M-3, the 0.45% class M-4, the 0.20% class M-5, the 0.55% class B-1, the 0.15% class B-2, the 0.35% privately offered class B-3, the 0.40% privately offered class B-4 and the 0.35% privately offered Class B-5 (not rated by Fitch). Classes M-1, M-2, M-3, M-4, M-5, B-1, B-2, B-3 and B-4 are rated 'AA+', 'AA' , 'A+' , 'A' , 'A-', 'BBB', 'BBB-', 'BB' and 'B' based on their respective subordination only.
Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing), rated 'RMS2+' by Fitch, a direct wholly owned subsidiary of Countrywide Home Loans, Inc. (CHL).
The mortgage pool consists of three loans groups. Loan Group 1 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $105,999,936 as of the cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 73.98%. The weighted average FICO credit score is approximately 703. Cash-out refinance loans represent 38.21% of the mortgage pool and second homes 5.79%. The average loan balance is $616,279. The three states that represent the largest portion of mortgage loans are California (37.29%), Florida (7.18%), and Washington (6%).
Loan Group 2 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $340,319,460 as of the cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 74.68%. The weighted average FICO credit score is approximately 704. Cash-out refinance loans represent 38.43% of the mortgage pool and second homes 7.20%. The average loan balance is $633,742. The three states that represent the largest portion of mortgage loans are California (36.63%), New York (9.62%), and Florida (6.11%).
Loan Group 3 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $250,207,485 as of the cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 75.10%. The weighted average FICO credit score is approximately 712. Cash-out refinance loans represent 30.42% of the mortgage pool and second homes 6.33%. The average loan balance is $669,004. The three states that represent the largest portion of mortgage loans are California (35.96%), Florida (6.15%), and New Jersey (5.87%).
Approximately 50.21% and 49.79% of the Group 1 mortgage loans, 36.10% and 63.90% of the Group 2 mortgage loans, and 13.53% and 86.47% of the Group 3 mortgage loans were originated under CHL's Standard Underwriting Guidelines and Expanded Underwriting Guidelines, respectively. Mortgage loans underwritten pursuant to the Expanded Underwriting Guidelines may have higher loan-to-value ratios, higher loan amounts, higher debt-to-income ratios and different documentation requirements than those associated with the Standard Underwriting Guidelines. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for the presence of these attributes.
The depositor will also deposit approximately $42,680,539 and $55,292,515, with respect to Group 2 and Group 3, respectively, into a pre-funding account on the closing date. The amounts in the pre-funding account will be used to purchase supplemental mortgage loans for Group 2 and Group 3 after the closing date and on or prior to September 30, 2006.
CWALT purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits (REMICs).
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.