Three subordinate classes from three Saxon Asset Securities Trust transactions have been placed under review for possible downgrade by Moody's Investors Service.The affected classes are: class MF-2 of series 2001-1; class B-1 of series 2001-2; and class B of series 2001-3. 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. In series 2001-1, the overcollateralization has been fully depleted and the BF-1 tranche is realizing losses, the rating agency said. In series 2001-2 and 2001-3, "pipeline losses could cause eventual depletion of the overcollateralization and possible losses on the most subordinate tranches," Moody's said. The certificates are secured by fixed- and adjustable-rate subprime home equity loans.

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