Three subordinate certificates from three subprime securitizations issued by Saxon Asset Securities Trust in 2001 have been downgraded by Moody's Investors Service.The downgrades were as follows: series 2001-1, class MF-2, from Ba2 to Ba3; series 2001-2, class B-1, from Ba2 to B1; and series 2001-3, class B, from Ba1 to B1. The downgrades were based on weaker-than-expected performance by the mortgage pools and the resulting erosion of credit support, Moody's said. In the 2001-1 deal, the overcollateralization is almost fully depleted and the BF-1 tranche has realized losses, the rating agency reported. In the 2001-2 and 2001-3 deals, pipeline losses could cause further erosion of the overcollateralization and put pressure on the most subordinate tranches, Moody's said. Saxon Mortgage Inc. is the master servicer of the transactions, and Saxon Mortgage Services Inc., a sister company, is the primary servicer.

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