Five classes of GSAMP Trust series 2006-S3 mortgage-backed securities have been placed under review for possible downgrade by Moody's Investors Service.The affected certificates are classes M-5, M-6, M-7, B-1, and B-2. Moody's said the actions were taken because credit enhancement is low given the projected losses on the underlying pool. "The pool of mortgages has seen a spike in losses in recent months with high loss severity," the rating agency said. The transaction consists of subprime second-lien fixed-rate loans.

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