Fitch Eyes Oakwood MH Deals

All classes of 18 Oakwood manufactured housing securitizations have been placed on Rating Watch Negative by Fitch Ratings in the wake of a Nov. 15 Chapter 11 bankruptcy filing by Oakwood Homes.The filing came just days after Fitch downgraded 13 classes of Oakwood's manufactured housing deals. At the time, the rating agency cited Oakwood's recent discontinuation of its Loan Assumption Program and said its defaults and its repossession inventory had increased significantly. Fitch now says it is "unclear" what the effect would be on pool performance of a disruption or potential transfer of servicing due to the bankruptcy filing. "The limited number of manufactured housing servicers, as well as the limited interest from mortgage servicers in acquiring the servicing rights to this unique asset, make these securitizations particularly vulnerable," Fitch said. The following series were placed on Rating Watch Negative: 1994-A; 1995-A and B; 1996-A, B, and C; 1997-A, B, C, and D; 1998-B and C; 1999-A, B, C, and E; and 2000-A and B. The rating agency can be found on the Web at http://www.fitchratings.com.