Fitch Rates $848.31MM Renaissance Home Equity Loan Trust, Series 2005-4

NEW YORK--(BUSINESS WIRE)--Dec. 30, 2005--Fitch rates the Renaissance Home Equity Loan Trust, series 2005-4 $700,872,000 home equity loan asset-backed certificates as follows,
-- Classes A1-F, A1-A, and A-2, through A-6 'AAA';
-- $28,875,000 class M-1 'AA+';
-- $25,813,000 class M-2 'AA+';
-- $17,063,000 class M-3 'AA';
-- $13,563,000 class M-4 'AA-';
-- $13,563,000 class M-5 'A+';
-- $11,813,000 class M-6 'A';
-- $10,938,000 M-7 'BBB+';
-- $8,313,000 class M-8 'BBB';
-- $8,750,000 class M-9 'BBB';
-- $8,750,000 class M-10 'BBB-'.
The 'AAA' rating on the senior certificates reflects the 19.90% subordination provided by the 3.30% class M-1, the 2.95% class M-2, the 1.95% class M-3, the 1.55% class M-4, the 1.55% class M-5, the 1.35% class M-6, the 1.25% class M-7, the 0.95% class M-8, the 1.00% class M-9, the 1.00% class M-10, monthly excess interest and the initial and expected overcollateralization (OC) of 3.05%. In addition, the ratings on the certificates reflect the quality of the home equity loans, the soundness of the legal and financial structures, and the capabilities of Ocwen Federal Bank FSB (Ocwen) as servicer.

As of the cut-off date (Dec. 1, 2005), there were 4,433 mortgage loans, originated or acquired by Delta Funding Corporation, with an aggregate balance of $717,992,636.
The group I mortgage pool consists of loans bearing interest at adjustable rates, including mortgage loans that bear interest at rates that are fixed for two or three years before beginning to adjust. As of the cut-off date, the mortgage pool consists of 675 first lien loans with an aggregate balance of $115,689,998.15. The weighted average current loan-to-value ratio (LTV) for the mortgage loans is approximately 78.73% and the weighted average remaining term to maturity is approximately 358 months. The weighted average coupon (WAC) is 8.054%, the weighted average FICO is 600 and the average balance is $171,393. The three states that represent the largest portion of the mortgage loans are Florida (18.53%), New Jersey (16.41%), and Illinois (8.76%).

The group II mortgage pool consists of loans bearing interest at fixed rates. As of the cut-off date, the mortgage pool consists of 3,758 first and second lien loans with an aggregate balance of $602,302,638. The weighted average LTV for the mortgage loans is approximately 75.43% and the weighted average remaining term to maturity is approximately 333 months. The WAC is 7.877%, the weighted average FICO is 629, and the average balance is $160,272. The three states that represent the largest portion of the mortgage loans are New York (34.94%), Florida (11.19%), and Pennsylvania (5.42%).

Wells Fargo Bank, N.A. will act as securities administrator. Interest and principal payments will be distributed on the 25th day of each month commencing in January 2006. Sub-prime mortgage loans are generally made to borrowers who do not qualify for financing under conventional underwriting criteria due to prior credit difficulties and/or the inability to satisfy conventional documentation standards, and/or conventional debt-to-income ratios. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for these attributes. For federal income tax purposes, a real estate mortgage investment conduit (REMIC) election will be made with respect to the trust estate.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, http://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.

Home Equity Line of Credit – Is There a Prepayment Penalty?

For the most part, homeowners are familiar with home equity loans and
home equity lines of credit. With either option, you are able to acquire
funds for emergencies, home improvement projects, etc. Getting a line
of credit and using your home’s equity to your advantage is a huge
benefit to owning a home. However, before completing the credit application,
homeowners should carefully read and understand the credit line
agreement.

How Does a Home Equity Line of Credit Work?

A home equity line of credit is a credit line that is based on your
home’s equity. For example, if you owe $80,000 on a $120,000 mortgage,
your home’s equity is $40,000. When applying for a home equity line of
credit, the lender will approve you for a credit line up to the amount of
your home’s equity. Lines of credit are slightly different than home
equity loans. While home equity loans are also based on your home’s
equity, homeowners obtain a lump sum of money upon approval of their loan
application. These loans are generally based on a fixed rate, whereas
lines of credit have variable rates.

How to Obtain Funds with a Home Equity Line of Credit

Getting money from your home equity line of credit is very simple. Once
a lender approves your line of credit, you will be issued a checkbook
or ATM card. Whenever you need cash, you simply write yourself a check
from your credit line. Because the amount you withdraw from a line of
credit varies, your monthly payments will also vary. If you prefer a
predictable monthly payment, a home equity loan will best suit your needs.

Home Equity Line of Credit Prepayment Penalty

Home equity lines of credit have specific terms. Your lender may
approve your line of credit for 10 to 25 years. At the end of the term, you
must re-apply to obtain another credit line. Home equity lines of credit
are similar to other mortgage loans in regards to prepayment penalties.

Before applying and accepting a lender’s offer, carefully review the
offer and inquire of prepayment penalties. With a prepayment penalty, you
are charged a fee if the credit line is closed before the end of the
term. Typical fees are about $500. However, if the balance on your line
of credit is zero, but the account remains open for future withdrawals,
prepayment fees will not apply.

Here are our recommended Home Equity Loan Companies online.


Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.

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