Moody's Downgrades 2nd-Lien MBS Classes

More than 50 certificates in 10 second-lien mortgage-backed security transactions from three issuers have been downgraded by Moody's Investors Service. The downgrades affected the following securities: 37 certificates from eight Terwin Mortgage Trust deals; seven certificates from Soundview Home Loan Trust 2006-A; and seven certificates from IndyMac Home Equity Mortgage Loan Asset-Backed Trust, INDS 2006-A. Moody's also placed four certificates on review for possible further downgrade. The rating actions were taken because "credit enhancement levels, including excess spread and subordination, were too low" when compared with projected losses, Moody's said. The actions take into account the "continued and worsening performance" of transactions backed by closed-end second-lien loans and home equity lines of credit.