NEW YORK, Aug 29, 2008 (BUSINESS WIRE) — Fitch rates Lehman Mortgage Trust’s residential mortgage pass-through certificates, series 2008-6, as follows:
–$129,332,000 classes 1-A1, 1-A2, 2-A1, 2-A2, 2-A3 and 2-AIO senior certificates ‘AAA’;
–$6,614,000 class B1 ‘AA’;
–$2,792,000 class B2 ‘A’;
–$1,764,000 class B3 ‘BBB’;
–$2,278,000 privately offered class B4 ‘BB’;
–$1,396,000 privately offered class B5 ‘B’.
The ‘AAA’ rating on the senior certificates reflects the 12% subordination provided by the 4.50% B1 class, 1.90% B2 class, 1.20% B3 class, 1.55% privately offered B4 class, 0.95% privately offered B5 class and 1.90% privately offered and non-rated B6 class. Fitch believes the above credit enhancement will be sufficient to cover credit losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the capabilities of Aurora Loan Services LLC as master servicer (rated ‘RMS1-’ by Fitch).
The mortgage pool consists primarily of 209 fixed- and adjustable-rate, first lien, one- to four-family, residential mortgage loans, a substantial majority of which have original terms to maturity of 30 years. As of the cut-off date, the pool had an aggregate principal balance of approximately $146,968,430. The average loan balance is $703,198 and the weighted average original loan-to-value ratio (OLTV) for the mortgage loans in the pool is approximately 72.90%. The weighted average credit score for the pool is approximately 750. Cash-out and rate/term refinance loans represent 21.48% and 40.34% of the pool, respectively. Second and investor-occupied homes account for 2.70% and 1.16% of the pool, respectively. The states that represent the largest geographic concentration are California (30.05%), Colorado (9.84%) and Maryland (6.81%).
For federal income tax purposes, elections will be made to treat the trust fund as one or more real estate mortgage investment conduits (REMICs). Wells Fargo Bank, N.A. will act as Trustee and as securities administrator for the trust.
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.