DBRS Rates Ameriquest Mortgage Sec.’s Series 2004-R11

DBRS has assigned the above ratings to the Asset-Backed Pass-Through Certificates, Series 2004 R11 issued by Ameriquest Mortgage Securities Inc.

The AAA ratings on the Class A certificates reflect 13.15% of credit enhancement provided by the subordinate classes, initial overcollateralization, and monthly excess spread. The AA (high) rating on Class M-1 reflects 8.90% of credit enhancement. The AA rating on Class M-2 reflects 6.75% of credit enhancement. The AA (low) rating on Class M-3 reflects 5.65% of credit enhancement. The A (high) rating on Class M-4 reflects 4.65% of credit enhancement. The “A” rating on Class M-5 reflects 3.80% of credit enhancement. The A (low) rating on Class M-6 reflects 3.00% of credit enhancement. The BBB (high) rating on Class M-7 reflects 2.50% of credit enhancement. The BBB rating on Class M-8 reflects 2.15% of credit enhancement. The BBB (low) rating on Class M-9 reflects 1.55% of credit enhancement. The BB (high) rating on Class M-10 reflects 0.60% of credit enhancement.
The ratings of the certificates also reflect the quality of the underlying assets and the capabilities of Ameriquest Mortgage Company as Master Servicer, as well as the integrity of the legal structure of the transaction. Deutsche Bank National Trust Company will act as Trustee.
Interest and principal payments collected from the mortgage loans will be distributed on the 25th day of each month commencing in December 2004. Interest will be paid to the Class A certificates, followed by interest to the subordinate classes. Unless paid down to zero, principal collected will be paid exclusively to the Class A certificates until the step-down date. After the step-down date, and provided that certain performance tests have been met, principal payments may be distributed to the subordinate certificates. Additionally, provided that certain performance tests have been met, the level of overcollateralization may be allowed to step down to 1.20% of the then-current balance of the mortgage loans.

The mortgage loans in the Underlying Trust were originated by Ameriquest Mortgage Company (92.6%) and Town and Country Credit Corporation (7.4%). As of the cut-off date (November 1, 2004), the mortgage loans will have an aggregate principal balance of $1,200,000,038. Approximately $299,999,962 will be deposited into a segregated pre-funding account. The trust will use this amount to acquire additional mortgage loans up to and including the 90th day after the closing date. The weighted average mortgage rate is 7.432%, weighted average FICO is 616, and the weighted average loan-to-value ratio is 78.1%. In addition, approximately 79% of the mortgage loans will be covered by primary mortgage insurance provided by Mortgage Guaranty Insurance Corporation.

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