Three subordinate tranches from two subprime mortgage transactions issued by Metropolitan Asset Funding Inc. have been placed under review for possible downgrade by Moody's Investors Service.The affected classes are classes B-2 and B-3 of series 1999-B and class M-2 of series 2000-A. The rating actions were based on the weaker-than-expected performance of the mortgage pools and the resulting erosion of credit support, Moody's said. Overcollateralization in the 1999-B deal is "almost completely depleted" and the class B-3 certificates are likely to experience losses in the near future, the rating agency reported. In addition, overcollateralization in the 2000-A deal has been "fully exhausted," the class B-1 certificates have been fully written down, and the class M-2 certificates have realized losses. The pools are backed by first-lien fixed-rate subprime mortgage loans, including a "significant" amount of seller-financed loans and loans with small average balances, Moody's said. The rating agency can be found online at http://www.moodys.com.

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