Date of Release: 2005-10-31

Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2005-HE1

Rates Series 2005-HE1

Dominion Bond Rating Service (“DBRS”) has assigned the above ratings to the Asset Backed Certificates, Series 2005-HE1 issued by Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2005-HE1.

The AAA ratings on the Classes I-A-1 through II-A-3 certificates (the “senior certificates”) reflect 25.00% of credit enhancement provided by the subordinate classes, targeted overcollateralization (1.45%), and monthly excess spread. The AA (high) rating on Class M-1 reflects 19.10% of credit enhancement. The AA rating on Class M-2 reflects 15.35% of credit enhancement. The AA (low) rating on Class M-3 reflects 13.05% of credit enhancement. The A (high) rating on Class M-4 reflects 10.95% of credit enhancement. The “A” rating on Class M-5 reflects 9.15% of credit enhancement. The A (low) rating on Class M-6 reflects 7.45% of credit enhancement. The BBB (high) rating on Class M-7 reflects 5.90% of credit enhancement. The BBB rating on Class M-8 reflects 4.55% of credit enhancement. The BBB (low) rating on Class M-9 reflects 3.25% of credit enhancement. The BB (high) rating on Class B-1 reflects 2.45% of credit enhancement. The BB (high) rating on Class B-2 reflects 1.45% of credit enhancement.

The ratings of the certificates also reflect the quality of the underlying assets and the capabilities of Select Portfolio Servicing, Inc. (64%), Option One Mortgage Corporation (34%), and Countrywide Home Loan Servicing (2%) as the Servicers, as well as Wells Fargo Bank, N.A. as the Master Servicer. HSBC Bank USA, National Association will act as the Trustee. In addition, the certificates will also be entitled to the benefits of an interest rate swap with Swiss Re Financial Products Corporation.
Interest and principal payments collected from the mortgage loans will be distributed on the 25th day of each month commencing in November 2005. Interest will be first paid to the senior certificates on a pro rata basis and then sequentially to the subordinate classes. Until the step-down date, principal collected will be paid exclusively to the senior certificates unless they are paid down to zero. After the step-down date, and provided that certain performance tests have been met, principal payments will be distributed among the certificates of all classes on a pro rata basis. In addition, provided that certain performance tests have been met, the level of overcollateralization may be allowed to step down to 2.90% of the then-current balance of the mortgage loans.

The mortgage loans were primarily originated or acquired by Option One Mortgage Corporation (34%), Quick Loan Funding, Inc (21%), and New Century Mortgage Corporation (19%). As of the cut-off date (October 1, 2005), the aggregate principal balance of the mortgage loans is US$1,150,121,445. The weighted average mortgage rate is 7.332%, the weighted average FICO is 616, and the weighted average original loan-to-value ratio is 79.68%. About 23% of the mortgage loans are covered by lender paid mortgage insurance provided by Mortgage Guaranty Insurance Corporation.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.