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Classes B-4 and B-5 of Morgan Stanley Mortgage Loan Trust series 2006-4SL have been placed on review for possible downgrade by Moody's Investors Service.The rating actions stemmed from the fact that the bonds' credit enhancement levels, including excess spread, may be too low to cover projected losses at the current rating level, Moody's said. The transaction is backed by closed-end second-lien loans.

Two classes of certificates from a transaction issued by Home Equity Mortgage Trust in 2006 have been placed on review for possible downgrade by Moody's Investors Service.The affected securities are classes M-9 and B-1 of series 2006-5. "The projected pipeline loss has increased over the past few months and may affect the credit support for these certificates," Moody's said. The transaction is backed by closed-end second-lien loans.

Two classes of the Soundview Home Loan Trust 2006-A transaction have been downgraded by Moody's Investors Service and placed on review for possible further downgrade, and four others have been placed on review for possible downgrade.Class M-10 was downgraded from Ba1 to B3, and class M-11 was downgraded from Ba2 to Caa2. The securities placed on review for possible downgrade are classes M-6, M-7, M-8, and M-9. The negative rating actions were attributed to credit enhancement levels, including excess spread, that "may be too low compared to the current projected loss numbers at the current rating level," Moody's said. The transaction is backed by subprime second-lien loans.

Four classes of certificates from MASTR Second Lien Trust series 2006-1 have been downgraded by Moody's Investors Service, three of which are being maintained on review for possible downgrade.The downgrades were as follows: class M-7, from B3 to C; class M-4, from Baa1 to Ba3; class M-5, from Baa2 to B3; and class M-6, from Baa3 to Caa3. Classes M-4, M-5, and M-6 were maintained on review for possible further downgrade. In addition, classes M-2 and M-3 were placed on review for possible downgrade. "These actions are based on the analysis of the credit enhancement provided by subordination, overcollateralization, and excess spread relative to the expected loss," Moody's said. The transaction is backed by closed-end subprime second-lien loans.

Nine classes of New Century Home Equity Loan Trust series 2006-S1 have been downgraded by Moody's Investors Service, six of which have been maintained on review for possible further downgrade.Moody's also confirmed the rating on one certificate from the deal. The negative rating actions were attributed to the fact that credit enhancement levels may be too low to maintain current rating levels in view of projected losses. The transaction is backed by subprime second-lien loans.

Ten classes from Fremont Home Loan Trust series 2006-B have been downgraded by Moody's Investors Service, and nine of them have been maintained on review for possible further downgrade.The negative rating actions were based on credit enhancement levels, including excess spread, that may be too low in view of the projected losses, the rating agency said. The transaction is backed by subprime second-lien loans.

Nineteen classes from four GSAMP Trust securitizations have been downgraded by Moody's Investors Service, and 21 classes (including eight of those downgraded) have been placed on review for possible downgrade.The negative rating actions stemmed from the fact that credit enhancement levels are low given the projected losses on the underlying pool, Moody's said. The transactions consist of subprime second-lien fixed-rate loans. The primary originators were Fremont Investment & Loans, IndyMac Bank FSB, Long Beach Mortgage Co., and New Century Mortgage Co.

Twenty-eight classes from seven Terwin Mortgage Trust securitizations have been downgraded by Moody's Investors Service, and all but one have been placed on review for possible further downgrade.In addition, nine other classes from three of the deals have been placed on review for possible downgrade. The negative rating actions were based on the fact that credit enhancement levels (including excess spread) may be too low in view of projected losses, Moody's said. The transactions are backed by second lien loans.

Moody's Investors Service said June 15 that a host of negative rating actions it announced that day reflect the fact that second-lien subprime mortgage loans securitized in 2006 are defaulting at a "materially higher" rate than originally expected."Those loans were originated in an environment of aggressive underwriting and lack protection from home owner equity," the rating agency said. "The combination of this risk layering with slowing home price appreciation has caused significant loan performance deterioration and is the primary factor in these rating actions." The actions resulted in the downgrading of 131 securities (of which 111 remain on review for possible further downgrade), and 136 other classes were placed on review for possible downgrade, Moody's reported. The rating agency can be found online at http://www.moodys.com.

Democratic Sens. Christopher J. Dodd (Conn.) and Mary L. Landrieu (La.) are co-sponsoring a comprehensive bill to speed up the recovery in the Gulf Coast that would allow Federal Housing Administration lenders to convey hurricane-damaged properties to HUD.Currently, the Department of Housing and Urban Development requires lenders to convey properties in habitable condition before they can be reimbursed for losses on an FHA single-family loan. But his policy has left damaged and empty residential properties scattered throughout the Gulf Coast, hindering redevelopment. Once HUD takes over ownership, the department can sell or transfer the properties to local governments or the private sector. The House has passed a similar FHA conveyance provision in its Gulf Coast housing recovery bill (H.R. 1227). The Senate bill also provides that Louisiana would have to put up $1 billion for its Road Home program before the federal government would cover any additional shortfall. The Road Home program, which provides grants of up to $150,000 to repair and rebuild homes damaged by hurricanes Katrina and Rita, has run into a $4 billion to $5 billion shortfall. The shortfall stems from the fact that the program covers wind and flood damage, not just flood damage as originally intended by Congress. In addition, 143,000 homeowners have qualified for grants -- 20,000 more than originally estimated.