Forty-five classes from 19 Oakwood Homes manufactured housing transactions have been downgraded by Fitch Ratings.In addition, the rating agency affirmed 31 classes from 15 Oakwood deals.Fitch attributed the downgrades to the deteriorating performance of the manufactured housing pools. After Oakwood filed for chapter 11 bankruptcy protection in November 2002, the company made changes to servicing practices that have caused volatility in performance, Fitch said. "Default rates and loss severities have been negatively affected since Oakwood ceased its loan assumption program and began relying solely upon wholesale channels for liquidation of repossessed homes," the rating agency said. After the sale of Oakwood's operations to Clayton Homes in April 2004, Clayton resumed its loan extension and loan assumption programs, but "portfolio losses have continued to erode credit enhancement levels within the transactions, most immediately threatening certain subordinate certificate classes," Fitch said.

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