Twenty-two classes from 10 second-lien subprime transactions issued in 2007 have been placed on review for possible downgrade by Moody's Investors Service.The rating actions affected deals issued by Ace Securities Corp. Home Equity Loan Trust, American Home Mortgage Investment Trust, Bear Stearns Mortgage Funding Trust, C-Bass Mortgage Loan Asset-Backed Certificates, Greenpoint Mortgage Funding Trust, Nomura Asset Acceptance Corp. Alternative Loan Trust, SACO I Trust, and Terwin Mortgage Trust. In a review of second-lien transactions rated in 2007, Moody's said it found that their projected pipeline losses had "significantly increased over the past few months, likely affecting the credit support for these certificates." The rating agency noted that it recently updated its methodology for rating closed-end second-lien transactions because of "the rapid velocity of early delinquencies and losses in closed-end second-lien subprime loans originated in 2006."

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