Moody's Investors Service has downgraded 88 classes of certificates from 18 transactions issued in early 2007 and backed by closed-end second-lien mortgage loans.Moody's also placed 18 classes on review for possible downgrade from the same transactions. The negative rating actions were attributed to "the extremely poor performance" of closed-end second-lien loans securitized in early 2007. "These loans have seen a high rate of early default and deals backed by those loans have been continuously building up significant pipeline," Moody's said. "The performance closely tracks the performance of 'piggyback loans' securitized in 2006 due to the aggressive underwriting guidelines combined with prolonged home price decline." Issuers with eight or more downgraded classes in transactions affected by the Moody's actions were ACE Securities Corp. Home Equity Loan Trust, Bear Stearns Mortgage Funding Trust, Bear Stearns Second Lien Trust, First Franklin Mortgage Loan Trust, and SACO I Trust. Moody's can be found online at http://www.moodys.com.

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