Oakwood MH Classes Downgraded

Thirteen classes of Oakwood Manufactured Housing Transactions have been downgraded by Fitch Ratings.The rating agency also affirmed eight limited-guarantee bonds and 86 classes in Oakwood transactions. The downgrades were as follows: B-2 classes of series 1996-A, 1996-B, 1996-C, and 1998-C, from BB to CCC; B-1 classes of series 1997-D, 1998-B, 1999-E, and 2000-A, from BBB to BBB-minus; class B-2 of series 1998-C, from BB to CCC; B-1 classes of series 1999-A and 1999-B, from BBB to BB; class B-1 of series 1999-C, from BBB-minus to BB-plus; and B-2 classes of series 1999-E and 2000-D, from BB to B-minus. "The rating actions reflect the deteriorating performance of the manufactured housing pools as well as recent changes in Oakwood's servicing practices, which have caused losses to increase rapidly," Fitch said. Oakwood recently discontinued its Loan Assumption Program, under which it had avoided repossessing homes by finding other borrowers to assume monthly payments, and now its defaults and its repossession inventory have increased significantly, Fitch said. The rating agency can be found on the Web at http://www.fitchratings.com.