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Bear Stearns Mortgage Funding Trust 2006-SL1 Ratings Cut On Eight Second-Lien Classes
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Publication Date:    Sep 25, 2007 12:21 EST

Bear Stearns Mortgage Funding Trust 2006-SL1 Ratings Cut On Eight Second-Lien Classes
Primary Credit Analyst:
Lal Mahabir, New York (1) 212-438-2395;
lal_mahabir@standardandpoors.com
Secondary Credit Analyst:
Ernestine Warner, New York (1) 212-438-2633;
ernestine_warner@standardandpoors.com
Publication date: 25-Sep-07, 12:21:24 EST
Reprinted from RatingsDirect 


NEW YORK (Standard & Poor's) Sept. 25, 2007--Standard & Poor's Ratings 
Services today low
ered its ratings on eight classes from Bear Stearns Mortgage 
Funding Trust 2006-SL1 (see list).
     The downgrades reflect the poor performance of the collateral pool. 
Monthly net losses have consistently exceeded monthly excess interest cash 
flows, resulting in the complete write-down of the overcollateralization (O/C) 
for this deal. In addition, the entire principal balances of classes B-2, B-3, 
and B-4, and approximately $39,093 of the principal balance of class B-1, have 
been written down.
     As of the September 2007 distribution period, total delinquencies were 
15.54% and severe delinquencies were 9.34%. Although the transaction is 13 
months seasoned, it has experienced approximately 9.28% in cumulative realized 
losses to date. The outstanding pool factor is 64.63%.
     Subordination, O/C, and excess interest cash flows provide credit support 
for this transaction. The collateral consists of 30-year, fixed-rate, 
closed-end second-lien mortgage loans secured by one- to four-family 
residential properties.
 
RATINGS LOWERED
 
Bear Stearns Mortgage Funding Trust 2006-SL1
            Rating
Class     To       From
M-2       A        AA
M-3       BBB-     A-
M-4       B+       BB+
M-5       CCC      B
B-1       D        CCC
B-2       D        CCC
B-3       D        CCC
B-4       D        CCC

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