Class M6 of Meritage Mortgage Loan Trust series 2003-1 has been placed on review for possible downgrade by Moody's Investors Service.The rating action was attributed to credit enhancement levels that may be low given the projected losses on the underlying pools. "Overcollateralization has declined due to losses and the transaction has stepped down, causing the subordinated certificates to start receiving their share of unscheduled prepayments," Moody's said. "In addition, the severity of loss on liquidated loans has begun to increase." The transaction is backed primarily by first-lien adjustable- and fixed-rate subprime mortgage loans originated by Meritage Mortgage Corp.

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