Fitch Rates HSBC Home Equity Loan Trust 2007-3

Business Wire, Oct 18, 2007

NEW YORK -- Fitch rates HSBC Home Equity Loan Trust (USA) 2007-3, which closed today as follows:

--$668,200,000 class A-PT, A-1, A-2, A-3, and A-4 (senior certificates) 'AAA';

--$50,300,000 class M-1 certificates 'AA+';

--$20,200,000 class M-2 certificates 'AA'.

The 'AAA' rating on the senior certificates reflects the 25.65% total credit enhancement provided by the 5.60% class M-1 certificate, 2.25% class M-2, the 17.80% initial over-collateralization (OC), and the 17.80% target OC. Initial OC is set at $159,999,054.

All certificates have the benefit of monthly excess cash flow to absorb losses. In addition, the ratings reflect the quality of the loans and the integrity of the transaction's legal structure, as well as the primary servicing capabilities of HSBC Finance Corp. (rated 'RPS2-' by Fitch).

The mortgage pool consists of closed-end fixed- and declining-rate fully amortizing home equity loans with a cut-off date aggregate principal outstanding balance of $898,699,054. As of the cut-off date (Sept. 26, 2007), the weighted average loan rate is approximately 8.755%, and the weighted average original term to maturity is 317 months. The average cut-off date principal balance of the mortgage loans is approximately $140,730. The weighted average combined original loan-to-value ratio is 87.34%, and the weighted average Fair, Isaac & Co. (FICO) score is 629. The properties are located in Virginia (11.08%), Florida (8.09%), Pennsylvania (7.08%), New York (6.62%), and otherwise distributed over many other states.

All of the mortgage loans were purchased by an affiliate of the depositor from various sellers in secondary market transactions. For federal income tax purposes, an election will be made to treat the trust as multiple real estate mortgage investment conduits (REMICs).

For more information, please see Fitch's new issue report titled HSBC Home Equity Loan Trust (USA) 2007-3, and available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.