Fitch Rates HarborView Mortgage Loan Trust 2005-16

Business Wire, Dec 1, 2005

NEW YORK -- Fitch rates HarborView Mortgage Loan Trust 2005-16 mortgage loan pass-through certificates as follows:

-- $1.513 billion classes 1 A1A, 1 A1B, 2 A1A, 2 A1B, 2 A1C, 3 A1A, 3 A1B, 3 A1C, 4-A1A, 4-A1B, X-1, X-2, X-3, X-4, X-B, PO-1, PO-2, PO-3, PO-4, PO-B, and A-R (senior certificates) 'AAA';

-- $41.4 million class B-1 'AA ';

-- $22.8 million class B-2 'AA';

-- $14.3 million class B-3 'AA-';

-- $12.7 million class B-4 'A ';

-- $11.8 million class B-5 'A';

-- $10.9 million class B-6 'A-';

-- $8.4 million class B-7 'BBB ';

-- $4.2 million class B-8 'BBB';

-- $8.4 million class B-9 'BBB-';

-- $11.8 million class B-10 'BB'.

The classes B-11, B-12, and A-R-II are not rated by Fitch.

The 'AAA' rating on the senior certificates reflects the 10.50% credit enhancement provided by the 2.45% class B-1, 1.35% class B-2, 0.85% class B-3, 0.75% class B-4, 0.70% class B-5, 0.65% class B-6, 0.50% class B-7, 0.25% class B-8, 0.50% class B-9, 0.70% class B-10, 1.0% class B-11, and 0.80% class B-12. The ratings on the classes B-1 through B-10 certificates are based on their respective subordination.

Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and the servicing capabilities of Countrywide Home Loan Servicing (rated 'RPS1'/'RMS2 ' by Fitch).

The trust comprises four cross-collateralized groups of 2,439 conventional first lien mortgage loans with an aggregate principal balance of $1,017,317,094 as of the cut-off date, Nov. 1, 2005. The collateral was primarily originated by Countrywide Home Loans. The mortgage loans are adjustable-rate mortgages (ARMs) with the potential to negatively amortize, commonly known as Option ARMs. The Option ARM borrowers have four payment options: interest only (IO), minimum monthly payment (MMP), principal and interest payment based on a 15-year amortization schedule, and principal and interest payment based on a 30-year amortization schedule. The loans may negatively amortize if the borrower chooses to make the MMP particularly in a rising rate environment. The Option ARMs are indexed to either one-month LIBOR plus a spread, or the 12-month moving average U.S. Treasury index (MTA) plus a spread.

Loan group 1 consists of conforming balance mortgage loans with an aggregate principal balance of $211,775,351.79 as of the cut-off date. The average principal balance is $223,392. The original weighted average loan-to-value ratio (OLTV) is 77.97% and the weighted average FICO score is 700. Cash-out and rate/term refinance loans represent 42.11% and 14.08% of the loan pool, respectively. The states that represent the largest portion of mortgage loans are California (34.74%), Florida (17.26%), Nevada (7.10%), and Arizona (6.87). All other states represent less than 5% of the loan pool.

Loan group 2 consists of conforming and non-conforming balance mortgage loans with an aggregate principal balance of $187,838,333 as of the cut-off date. The average principal balance is $513,219. The original weighted average OLTV ratio is 77.40% and the weighted average FICO score is 708. Cash-out and rate/term refinance loans represent 24.74% and 11.64% of the loan pool, respectively. The states that represent the largest portion of mortgage loans are California (48.01%), New Jersey (10.87%), Florida (8.04%), and Virginia (6.97). All other states represent less than 5% of the loan pool.

Loan group 3 consists of conforming and non-conforming balance mortgage loans with an aggregate principal balance of $595,979,740 as of the cut-off date. The average principal balance is $544,771. The original weighted average OLTV ratio is 75.63% and the weighted average FICO score is 706. Cash-out and rate/term refinance loans represent 38.20% and 11.56% of the loan pool, respectively. The states that represent the largest portion of mortgage loans are California (70.69%) and Florida (9.27%). All other states represent less than 5% of the loan pool.

Loan group 4 consists of conforming and non-conforming balance mortgage loans with an aggregate principal balance of $21,723,668 as of the cut-off date. The average principal balance is $700,764. The original weighted average OLTV ratio is 77.37% and the weighted average FICO score is 706. Cash-out and rate/term refinance loans represent 48.70% and 9.25% of the loan pool, respectively. The states that represent the largest portion of mortgage loans are Florida (45.41%), California (13.65%), New Jersey (7.49%), Louisiana (6.68%), Colorado (6.00%), and Michigan (5.65%). All other states represent less than 5% of the loan pool.

None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation,' available on the Fitch Ratings web site at www.fitchratings.com.