NEW YORK (Standard & Poor's) Sept. 25, 2007--Standard & Poor's Ratings
S
ervices today lowered its ratings on six classes from Fremont Home Loan Trust
2006-B (see list).
The downgrades reflect the poor performance of collateral pool 2 of this
transaction, which is backed by 30-year second-lien mortgages. Monthly net
losses for this pool have continued to exceed monthly excess cash flow by a
large amount and resulted in a write-down to class SL-M7. While this pool is
seasoned 12 months, SL-M7 is the fourth class to default.
As of the August 2007 distribution period, total delinquencies were
21.89%, with 11.88% categorized as severely delinquent. Loan group 2 has
approximately 14.43% in cumulative realized losses. Additionally, this pool
has experienced monthly average losses of approximately $6.14 million over the
past six distribution periods, and it has a pool factor of 71.58%.
Credit support for this transaction is provided by subordination,
overcollateralization, and excess interest cash flow. The collateral for this
pool consists of 30-year, adjustable- and fixed-rate, closed-end second-lien
mortgage loans secured by one- to four-family residential properties.
RATINGS LOWERED
Fremont Home Loan Trust 2006-B
Rating
Class To From
SL-A A AAA
SL-M1 BB+ AA+
SL-M2 B AA
SL-M3 CCC AA-
SL-M4 CCC B
SL-M7 D CCC
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