Three classes of First Horizon Home Loan Mortgage Trust mortgage-backed securities have been placed on Rating Watch Negative by Fitch Ratings.The affected securities are the B5 classes of series 2005-AA7, series 2005-AA8, and series 2006-FA1. The negative rating actions were attributed to "signs of increasing credit risk, posing a potential threat to subordinate bonds." The collateral for the transactions consists of conventional 15- and 30-year fixed-rate residential mortgages extended to prime borrowers.
Fitch Eyes First Horizon MBS Classes
April 19, 2007, 2:00 p.m. EDT 1 Min Read
