Fitch Rates CWMBS $366.2MM Mtge P-T Ctfs Series 2006-14

Business Wire,  July 31, 2006  

• E-mail
• Print
• Link

NEW YORK -- Fitch rates CWMBS, Inc.'s (CWMBS) mortgage pass-through certificates (CHL Mortgage pass-through trust) series 2006-14 as follows:

--$354.4 million classes A-1 through A-6, X, PO and A-R certificates (senior certificates) 'AAA';

--$8.5 million class M certificates 'AA';

--$2.2 million class B-1 certificates 'A';

--$1.1 million class B-2 certificates 'BBB';

--$736,000 class B-3 certificates 'BB';

--$552,000 class B-4 certificates 'B'.

The 'AAA' rating on the senior certificates reflects the 3.70% subordination provided by the 2.30% class M, the 0.60% class B-1, the 0.30% class B-2, the 0.20% privately offered class B-3, the 0.15% privately offered class B-4 and the 0.15% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3 and B-4 are rated 'AA', 'A', 'BBB', 'BB' and 'B' based on their respective subordination only.

Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing), rated 'RMS2+' by Fitch, a direct wholly owned subsidiary of Countrywide Home Loans, Inc. (CHL).

The master servicing fee for the CWMBS 2006-14 transaction has decreased to 0.175%. This change is consistent with Fitch's criteria. For additional information regarding Fitch's minimum servicing fee criteria, please see the press release issued July 27, 2006 entitled 'Fitch Announces Minimum Servicing Fees for U.S. RMBS Securitizations' available at www.fitchratings.com.

The certificates represent an ownership interest in a group of 30-year conventional, fully amortizing mortgage loans. The pool consists of 30-year fixed-rate mortgage loans totaling $367,999,538 as of the cut-off date, July 1, 2006 secured by first liens on one- to four-family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average original loan-to-value ratio (OLTV) of 73.78%. The weighted average FICO credit score is approximately 743. Cash-out refinance loans represent 19.88% of the mortgage pool and second homes 7.65%. The average loan balance is $624,787. The states that represent the largest portion of mortgage loans are California (32.3%), New York (5.48%), and New Jersey (5.10%).

None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation' available at www.fitchratings.com.

Approximately 99.67% and 0.33% were originated under CHL's Standard Underwriting Guidelines and Expanded Underwriting Guidelines, respectively. Mortgage loans underwritten pursuant to the Expanded Underwriting Guidelines may have higher loan-to-value ratios, higher loan amounts, higher debt-to-income ratios and different documentation requirements than those associated with the Standard Underwriting Guidelines. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for the presence of these attributes.

CWMBS purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits (REMICs).

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.

COPYRIGHT 2006 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning