DBRS Rates Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2007-2

DBRS has today assigned the following ratings to the Asset-Backed Certificates, Series 2007-2 issued by Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2007-2.

- $358.8 million Class I-A-1 rated at AAA
- $220.8 million Class II-A-1 rated at AAA
- $26.3 million Class II-A-2 rated at AAA
- $65.7 million Class II-A-3 rated at AAA
- $21.6 million Class II-A-4 rated at AAA
- $39.6 million Class M-1 rated at AA (high)
- $35.8 million Class M-2 rated at AA (high)
- $21.9 million Class M-3 rated at AA
- $19.5 million Class M-4 rated at AA (low)
- $17.7 million Class M-5 rated at A (high)
- $15.8 million Class M-6 rated at “A”
- $14.4 million Class M-7 rated at A (low)
- $13.5 million Class M-8 rated at BBB (high)
- $11.2 million Class M-9 rated at BBB
- $13.0 million Class B-1 rated at BBB (low)

The AAA ratings on the Class A Certificates reflect 25.50% of credit enhancement provided by the subordinate classes, initial and target overcollateralization (3.75% of the aggregate balance of the mortgage loans as of the cut-off date), and monthly excess spread. The AA (high) rating on Class M-1 reflects 21.25% of credit enhancement. The AA (high) rating on Class M-2 reflects 17.40% of credit enhancement. The AA rating on Class M-3 reflects 15.05% of credit enhancement. The AA (low) rating on Class M-4 reflects 12.95% of credit enhancement. The A (high) rating on Class M-5 reflects 11.05% of credit enhancement. The “A” rating on Class M-6 reflects 9.35% of credit enhancement. The A (low) rating on Class M-7 reflects 7.80% of credit enhancement. The BBB (high) rating on Class M-8 reflects 6.35% of credit enhancement. The BBB rating on Class M-9 reflects 5.15% of credit enhancement. The BBB (low) rating on Class B-1 reflects 3.75% of credit enhancement.

The ratings on the certificates also reflect the quality of the underlying assets and the capabilities of Ocwen Loan Servicing, LLC (92.54%), Equity One, Inc. (6.66%) and Wells Fargo Bank, N.A. (0.79%) as Servicers, as well as the integrity of the legal structure of the transaction. HSBC Bank USA, N.A. will act as Trustee. The Trust will enter into an interest rate swap agreement with HSBC Bank USA, National Association (the Swap Provider) for the benefit of the certificate holders, commencing in August 2007 and terminating after the January 2012 distribution date. The Trust will pay a fixed payment at 5.30% per annum to the Swap Provider in exchange for a floating payment at one-month LIBOR on declining swap notional amount. The Trust will enter into an interest rate cap agreement with HSBC Bank USA, National Association (the Cap Provider) for the benefit of the certificate holders, commencing in August 2008 and terminating after the January 2012 distribution date at a strike rate of 5.30%. In addition the certificate holders will benefit from a basis risk cap agreement provided by HSBC Bank USA, National Association commencing in February 2007 and terminating after the July 2007 distribution date.

Interest and principal payments collected from the mortgage loans will be distributed on the 25th day of each month commencing in February 2007. Interest will be paid first to the Class A Certificates on a pro rata basis and then sequentially to the subordinate certificates. Until the step-down date, principal collected will be paid exclusively to the Class A Certificates unless their respective note balances have been reduced to zero. After the step-down date, and provided that certain performance tests have been met, principal payments will be distributed among all classes on a pro rata basis. Additionally, provided that certain performance tests have been met, the level of overcollateralization may be allowed to step down to 7.50% of the then-current balance of the mortgage loans but no less than 0.50% of original collateral balance.

All mortgage loans in the Underlying Trust were originated or acquired by Ownit Mortgage Solutions, Inc. (42.38%) and First NLC Financial Services, LLC (11.56%), among others. As of the cut-off date (January 1, 2007), the aggregate principal balance of the mortgage loans is $930,628,229. The weighted average mortgage rate is 8.32%, the weighted average FICO is 633, and the weighted average combined loan-to-value ratio is 89.99%.

Note:
All figures are in U.S. dollars unless otherwise noted.

Ratings

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