Fitch Rates RASC $536MM Series 2004-KS12
NEW YORK — Residential Asset Securities Corporation’s (RASC) home equity mortgage asset-backed pass-through certificates, series 2004-KS12, are rated by Fitch Ratings as follows:
— $103.5 million class A-I-1 ‘AAA’;
— $107.1 million class A-I-2 ‘AAA’;
— $6.6 million class A-I-3 ‘AAA’;
— $195.5 million class A-II-1 ‘AAA’;
— $21.7 million class A-II-2 ‘AAA’;
— $48.4 million class M-1 ‘AA’;
— $27.5 million class M-2 ‘A’;
— $8.3 million class M-3 ‘A-‘;
— $7.7 million class M-4 ‘BBB+’;
— $6.1 million class M-5 ‘BBB’;
— $3.9 million class M-6 ‘BBB-‘.
The ‘AAA’ rating on the senior certificates reflects the 21% initial credit enhancement provided by the 8.80% class M-1, 5% class M-2, 1.50% class M-3, 1.40% class M-4, 1.10% class M-5, 0.70% class M-6, 1% unoffered class B, along with overcollateralization (OC). The initial and target OC is 1.50%. In addition, the ratings reflect the strength of the transaction’s legal and financial structures and the attributes of the mortgage collateral. The ratings also reflect the strength of the servicing capabilities represented by Homecomings Financial Network, Inc. (rated ‘RPS1’ by Fitch) and Residential Funding Corporation (RFC) as master servicer.
The collateral pool consists of 4,042 fixed- and adjustable-rate loans and totals $550 million as of the cut-off date. The weighted average original loan-to-value ratio (OLTV) is 81.63%. The average outstanding principal balance is $136,228 the weighted average coupon (WAC) is 7.36% and the weighted average remaining term (WAM) is 355 months. 66.15% of the loans have prepayment penalties. The loans are geographically concentrated in California (11.96%), Florida (8.66%) and Michigan (5.97%).
The loans were sold by RFC to RASC, the depositor. Prior to assignment to the depositor, RFC reviewed the underwriting standards for the mortgage loans and purchased all the mortgage loans from mortgage collateral sellers who participated in or whose loans were in substantial conformity with the standards set forth in RFC’s AlterNet program.
The AlterNet program was established primarily for the purchase of mortgage loans made to borrowers that may have imperfect credit histories, higher debt to income ratios or mortgage loans that present certain other risks to investors.
The depositor, a special purpose corporation, deposited the loans in the trust, which then issued the certificates. For federal income tax purposes, an election will be made to treat the trust as three real estate mortgage investment conduits (REMICs).
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