MERIT Collateralized Bonds Series 14-1 Rated By Fitch IBCA

Business Wire, Dec 2, 1999

NEW YORK--(BUSINESS WIRE)--Dec. 2, 1999--

MERIT Securities Corp.'s $363.1 million class 1-A collateralized bonds, series 14-1, are rated 'AAA' by Fitch IBCA.

The `AAA' rating on class 1-A reflects the 3.76% credit enhancement provided by the subordination of the class 1-M, along with target overcollateralization.

In addition, the rating reflects the quality of the underlying collateral, the pool insurance policies on 81% of the mortgage loans, the integrity of the legal and financial structures, and the servicing capabilities of Residential Funding Corporation, Countrywide Home Mortgage Loans, Inc. and various other servicers are sevicing a smaller percentage of the pool. Norwest Bank Minnesota, NA will master service the majority (83%) of the mortgage loans. Chase Bank of Texas, N.A. will serve as trustee and custodian.

The mortgage pool consists of conventional, adjustable-rate, first lien, one- to four-family residential mortgage loans (98%) and conventional, fixed-rate, first lien, one- to four-family residential mortgage loans (2%), collectively referred to as the initial loans. The weighted average seasoning is 78.6 months. The properties backing the initial loans are located primarily in California (78%), Virginia (3%) and Maryland (2%). The weighted average original loan to value ratio (LTV) of the initial loans is approximately 77.36%. The weighted average current loan rate is 8.18% and the weighted average remaining term is 279 months.