Fitch rates CWALT, Inc.'s (CWALT) mortgage pass-through
certificates, alternative loan trust 2006-28CB as follows:
-- $499.6 million classes A-1 through A-21, X, PO, and A-R certificates (senior certificates) 'AAA';
-- $10.2 million class M certificates 'AA';
-- $4.5 million class B-1 certificates 'A';
-- $3.1 million class B-2 certificates 'BBB';
-- $2.4 million class B-3 certificates 'BB';
-- $1.8 million privately offered class B-4 certificates 'B'.
The 'AAA' rating on the senior certificates reflects the 4.65% subordination provided by the 0.15% class M-A (not rated by Fitch), the 1.95% class M, the 0.85% class B-1, the 0.60% class B-2, the 0.45% class B-3, the 0.35% privately offered class B-4, and the 0.30% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3 and B-4 are rated 'AA', 'A', '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 certificates represent an ownership interest in a group of primarily 30-year conventional, fixed rate, fully amortizing mortgage loans. The pool consists of mortgage loans totaling $523,997,502 as of the initial cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The average loan balance is $202,004. The mortgage pool, as of the initial cut-off date, demonstrates an approximate weighted-average original loan-to-value ratio (OLTV) of 69.82%. The weighted average FICO credit score is approximately 716. Cash-out refinance loans represent 31.79% of the mortgage pool and second homes 6.33%. The states that represent the largest portion of mortgage loans are California (16.15%), Florida (11.82%), Texas (6.87%) and Arizona (5.68%). All other states represent less than 5% of the pool as of the cut-off date.
Approximately 6.58% and 93.42% of the 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.
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.
-- $499.6 million classes A-1 through A-21, X, PO, and A-R certificates (senior certificates) 'AAA';
-- $10.2 million class M certificates 'AA';
-- $4.5 million class B-1 certificates 'A';
-- $3.1 million class B-2 certificates 'BBB';
-- $2.4 million class B-3 certificates 'BB';
-- $1.8 million privately offered class B-4 certificates 'B'.
The 'AAA' rating on the senior certificates reflects the 4.65% subordination provided by the 0.15% class M-A (not rated by Fitch), the 1.95% class M, the 0.85% class B-1, the 0.60% class B-2, the 0.45% class B-3, the 0.35% privately offered class B-4, and the 0.30% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3 and B-4 are rated 'AA', 'A', '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 certificates represent an ownership interest in a group of primarily 30-year conventional, fixed rate, fully amortizing mortgage loans. The pool consists of mortgage loans totaling $523,997,502 as of the initial cut-off date, August 1, 2006, secured by first liens on one-to four- family residential properties. The average loan balance is $202,004. The mortgage pool, as of the initial cut-off date, demonstrates an approximate weighted-average original loan-to-value ratio (OLTV) of 69.82%. The weighted average FICO credit score is approximately 716. Cash-out refinance loans represent 31.79% of the mortgage pool and second homes 6.33%. The states that represent the largest portion of mortgage loans are California (16.15%), Florida (11.82%), Texas (6.87%) and Arizona (5.68%). All other states represent less than 5% of the pool as of the cut-off date.
Approximately 6.58% and 93.42% of the 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.
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.