Amresco Issues Novel $1B HEL Deal

Amresco has issued a $1 billion home equity securitization with a Freddie Mac guaranty on the $275 million fixed-rate portion of the offering.The fixed-rate classes of the series 1998-3 security, A-1 through A-6, are backed by mortgage loans that conform to Freddie Mac's subprime standards, Amresco said. "As ABS spreads have widened significantly in the last couple of weeks, this unique Amresco transaction has received significant economic benefits from the Freddie Mac wrap, in addition to deepening the investor base," said Scott J. Reading, president of Amresco Home Equity Lending, Ontario, Calif. Credit enhancement for the approximately $725 million floating-rate portion of the deal was provided through a senior/subordinate structure. The collateral consists mainly of first lien home equity loans originated or acquired by Amresco. The company said it was the first Amresco transaction to include a special servicer role that is controlled by the residual holder. Amresco Residential Mortgage Corp. will be the servicer and contractual special servicer for the deal. Amresco's website address is http://www.amresco.com.