...Updated Sustainable Home Price View (Negative): Fitch views the home price values of this pool as 10.3% above a long-term sustainable level in its `Bsf' stress. Nationally, Fitch views home prices as being 10.3% overvalued. Mixed Probability of Default Framework: Fitch's enhanced PD framework leverages an origination PD and a seasoned loan PD. The origination PD takes into account variables at the time of the loan's origination, while the seasoned PD will consider borrower performance and current status, along with loan amortization and LTV differentials. Pools that exhibit a low loan count or have considerably concentrated geographic MSAs may be subject to additional penalties. The AAAsf origination PD is 11.11% and the seasoned PD is 9.72%. No geographic or loan count penalty was applied, so the final AAAsf PD is 9.72%. Mixed Loss Severity Framework: Fitch's analysis incorporates a three-pronged probability weighted series of outcomes: (a) cure, (b) modification and (c) liquidation. The...
