Six classes of certificates from American Home Mortgage Investment Trust 2007-2 (backed by closed-end second-lien mortgage loans) have been downgraded by Moody's Investors Service. The downgrades were as follows: class II-A, from Aaa to Baa1 (and placed under review for possible further downgrade); class II-M-1, from Aa2 to Ba1 (and placed under review for possible further downgrade); class II-M-2, from A2 to Caa2; class II-M-3, from Baa2 to Ca; class II-M-4, from Baa3 to C; and class II-M-5, from Ba2 to C. "The actions reflect the extremely poor performance of the closed-end second-lien mortgage loans," Moody's said. "These loans have seen a high rate of early default, and the deal has built up a significant pipeline."
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