ABSC Home Equity Loan Trust 2002-HE3 Rated By Fitch Ratings

Business Wire, Oct 28, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 28, 2002

Asset-Backed Securities Corp.'s (ABSC) 2002-HE3 asset-backed pass-through certificates, series 2002-HE3 $283.5 million classes II-A and class II-AIO certificates are rated 'AAA' by Fitch Ratings.

Credit enhancement for the 'AAA' class II-A certificate reflects 20.15% credit enhancement provided by the 7.25% class II-M1, the 5.75% class II-M2, the 3.75% class II-M3, the 1.26% class II-M4, monthly excess interest, growing overcollateralization (OC), and cross-collateralization. The OC target will be 2.15% of the original balance of the group II loans. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Long Beach Mortgage Company's servicing capabilities as master servicer.

Group I consists of conforming fixed-rate (10.44%) and adjustable-rate (89.56%) mortgage loans secured by first liens on one- to four-family residential properties, with a cut-off date pool balance of $519 million. As of the cut-off date, Group I loans had a weighted average original loan-to-value ratio (OLTV) of 79.29%. Cash-out refinance loans accounted for approximately 48.27% of the Group I loans, condominiums accounted for approximately 6.20%, and second homes accounted for approximately 0.73%. The weighted average coupon (WAC) for the Group I loans was 9.207%. The average loan balance was $128,164 for the Group I loans. The three states that represent the largest portion of the Group I mortgage loans were California (39.64%), Colorado (9.58%), and Washington (5.49%).

Group II consists of non-conforming fixed-rate (18.68%) and adjustable-rate (81.32%) mortgage loans secured by first liens and second liens on one- to four-family residential properties, with a cut-off date pool balance of $346 million. As of the cut-off date, Group II loans had a weighted average OLTV of 80%. Cash-out refinance loans accounted for approximately 44.61% of the Group II loans, condominiums accounted for approximately 4.46%, and second homes accounted for approximately .80%. The WAC for the Group II Loans was 8.810% and the average loan balance was $190,689. The three states that represent the largest portion of the Group II mortgage loans were California (45.23%), Colorado (10.39%), and Texas (6.91%).

All of the mortgage loans were originated by Long Beach Mortgage Company. Asset Backed Securities Corp. deposited the loans into the trust, which issued the certificates. For federal income tax purposes, one or more elections will be made to treat the trust fund as a real estate mortgage investment conduit (REMIC).