Moody's Investors Service has placed under review for possible downgrade 66 tranches from 33 residential mortgage-backed securities deals backed primarily by first-lien alternative-A mortgage loans.The rating actions, affecting securities with an original face value of approximately $318 million, were based on higher-than-expected loan delinquency rates and pool losses, Moody's said. The deals have not experienced significant losses to date, but Moody's said credit enhancement may be low in view of the amount of loans in foreclosure and held as real estate owned. "Moody's has noted a negative trend in delinquencies for first-lien, alt-A mortgage loans originated in late 2005 and 2006," the rating agency said, citing data indicating that they have higher-than-expected delinquency rates. The loans were originated in an environment of "aggressive underwriting" that contributed to significant deterioration in loan performance, Moody's said. Half of the tranches placed under review, 33, come from 11 deals issued by CWABS Asset-Backed Certificates Trust and CWALT Inc. Mortgage Pass-Through Certificates, and 13 come from eight deals issued by Bear Stearns Alt-A Trust and Bear Stearns Asset Backed Securities I Trust, Moody's reported.

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