Two classes of certificates from Meritage Mortgage Loan Trust 2004-1 have been placed on review for possible downgrade by Moody's Investors Service.The class M-8 and B-1 notes are backed by average subprime collateral, consisting primarily of adjustable-rate mortgages, the rating agency said. Moody's said it will assess "whether rate resets and resulting prepayments may have contributed to the deterioration in credit quality of the pool in the past year, resulting in higher-than-expected projected tail-end losses."

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