Fitch Affirms 4 Classes from MERIT Series 12-1 RMBS Issue

Business Wire, Oct 5, 2007

NEW YORK -- Fitch Ratings has taken rating actions on the following MERIT Securities Corporation (MERIT) RMBS issue:

Series 12-1

--Class A affirmed at 'AAA';

--Class M-1 affirmed at 'BBB-';

--Class M-2 affirmed at 'B';

--Class B-1 remains at 'C/DR5'

The collateral in the aforementioned transaction consists of conventional, one- to four-family fully amortizing first lien mortgage loans and manufactured housing (MH) installment sales contracts. The MH portion of the pool was originated by Dynex Financial and is currently serviced by Origen Financial. The non-MH portion of the pool was originated and is currently serviced by various entities. As of the August 2007 distribution date, MERIT series 12-1 transaction is 101 months seasoned, and the pool factor (current mortgage loan principal outstanding as a percentage of the initial pool) is approximately 43%.

The affirmation reflects a satisfactory relationship between credit enhancement (CE) and future loss expectations and affects approximately $145.8 million of outstanding certificates.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch will continue to closely monitor this transaction. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings website 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.