The McGraw-Hill Companies
STANDARD & POOR'S

S&P Viewpoint

 

Fremont Home Loan Trust 2006-B Closed-End 2nd-Lien Transaction Ratings Lowered On Six Classes
Back
Publication Date:    Sep 25, 2007 09:02 EST

Fremont Home Loan Trust 2006-B Closed-End 2nd-Lien Transaction Ratings Lowered On Six Classes
Primary Credit Analyst:
Jessica Rivera, New York (1) 212-438-1726;
jessica_rivera@standardandpoors.com
Secondary Credit Analyst:
Ernestine Warner, New York (1) 212-438-2633;
ernestine_warner@standardandpoors.com
Publication date: 25-Sep-07, 09:02:13 EST
Reprinted from RatingsDirect 


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

Analytic services provided by Standard & Poor's Ratings Services (Ratings Services) are the result of separate activities designed to preserve the independence and objectivity of ratings opinions. The credit ratings and observations contained herein are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. Accordingly, any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision. Ratings are based on information received by Ratings Services. Other divisions of Standard & Poor's may have information that is not available to Ratings Services. Standard & Poor's has established policies and procedures to maintain the confidentiality of non-public information received during the ratings process.

Ratings Services receives compensation for its ratings. Such compensation is normally paid either by the issuers of such securities or third parties participating in marketing the securities. While Standard & Poor's reserves the right to disseminate the rating, it receives no payment for doing so, except for subscriptions to its publications. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.