56 Oakwood MH Classes Downgraded

Fifty-six classes from 20 Oakwood Homes manufactured housing transactions have been downgraded by Fitch Ratings.Fitch also affirmed the ratings on 40 other classes in the deals. The rating agency attributed the downgrades to the "deteriorating performance" of the manufactured housing pools. Oakwood Homes, a major manufacturer and lender in the manufactured housing industry, filed for Chapter 11 bankruptcy protection on Nov. 15, 2002. Oakwood received approval from the bankruptcy court to continue servicing its portfolio. "During this time the company has made changes to servicing practices which have caused volatility in performance," the rating agency said. "Losses have been high due to an increase in loss severities and default rates. Loss severities have been affected by Oakwood's sole reliance on the wholesale channel for liquidation of its repossessed homes." The rating agency can be found online at http://www.fitchratings.com.