Class M-3 of FNBA Mortgage Loan Trust 2004-AR1 has been placed on review for possible downgrade by Moody's Investors Service.The rating action was attributed to credit enhancement levels that are deemed to be low given the projected losses on the underlying pools. "The pool of mortgages has seen a spike in losses in recent months, and future losses could cause a more significant erosion of the overcollateralization," Moody's said. The transaction consists of alternative-A first-lien hybrid adjustable-rate loans.

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