Fitch Ratings assigns a rating of 'AAA' to AH Mortgage Advance Trust 2008-ADV1, advance receivables backed variable funding notes, series 2008-ADV1 in the amount of $1,100,000,000.
The notes are backed by the rights of AH Mortgage Servicing, Inc. (the servicer) as servicer, to receive reimbursements of principal and interested (P&I) and servicing advances made on certain underlying transactions. The servicer is required to make advances in respect of mortgage loans serviced under designated servicing agreements for (1) scheduled payments of principal and interest that have not been timely paid by mortgagors (P&I advances); (2) expenses associated with the preservation of a mortgaged property, including but not limited to property taxes, insurance premiums or other property-related expenses incurred in foreclosing upon, preserving and selling mortgage properties, including but not limited to attorney's and other professional fees and expenses incurred in connection with foreclosure and liquidation or other proceedings arising in the course of the mortgage loans (corporate advances); (3) tax and insurance escrow amounts required to be, but not, paid by a mortgagor under the related mortgage loans (escrow advances).
The 'AAA' rating primarily reflects the trust's first priority claim to the receivables as well as the discount factors of notes on the receivable value. The discount factors are as follows:
--91.5% for pool-level advances;
--79% for loan-level advances (non-judicial states and judicial states);
--80% for escrow advances (non-judicial states);
--79% for escrow advances (judicial states);
--80% for corporate advances (non-judicial and judicial states).
Additional rating considerations include an interest rate cap from Barclays Bank PLC with a strike rate of 5%, a reserve account whose funds will be available to cover interest shortfalls on the offered notes, the soundness of the legal and financial structure, and the capabilities of AH Mortgage Servicing as the servicer for the underlying transactions.
Fitch rates the servicer 'RPS3' for residential primary servicing of subprime product and 'RSS3' for residential special servicing. The primary servicer rating is based on the servicer's ability to service, collect and liquidate subprime residential mortgage loans. The special servicer rating reflects the servicer's ability to manage and liquidate non-performing residential mortgage loans and real estate owned assets.
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.
Contacts:
Wen Hsu, 212-908-0633
Christine Yan,
212-908-0838
or
Media Relations:
Sandro Scenga,
212-908-0278
Email: sandro.scenga@fitchratings.com
