DBRS Rates Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2007-3

DBRS has today assigned the following ratings to the Asset-Backed Certificates, Series 2007-3 issued by Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2007-3.

-- $245.1 million Class I-A-1 rated at AAA
-- $423.5 million Class II-A-1 rated at AAA
-- $47.7 million Class II-A-2 rated at AAA
-- $116.6 million Class II-A-3 rated at AAA
-- $6.2 million Class II-A-4 rated at AAA
-- $52.1 million Class M-1 rated at AA (high)
-- $46.4 million Class M-2 rated at AA (high)
-- $28.6 million Class M-3 rated at AA
-- $25.2 million Class M-4 rated at AA (low)
-- $24.0 million Class M-5 rated at A (high)
-- $20.0 million Class M-6 rated at “A”
-- $20.0 million Class M-7 rated at A (low)
-- $18.9 million Class M-8 rated at BBB (high)
-- $15.5 million Class M-9 rated at BBB

The AAA ratings on the Class A series certificates reflect 26.70% of credit enhancement provided by the subordinate classes, initial and target overcollateralization (4.80% 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 22.15% of credit enhancement. The AA (high) rating on Class M-2 reflects 18.10% of credit enhancement. The AA rating on Class M-3 reflects 15.60% of credit enhancement. The AA (low) rating on Class M-4 reflects 13.40% of credit enhancement. The A (high) rating on Class M-5 reflects 11.30% of credit enhancement. The “A” rating on Class M-6 reflects 9.55% 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 6.15% of credit enhancement. The BBB rating on Class M-9 reflects 4.80% of credit enhancement.

The ratings on the certificates also reflect the quality of the underlying assets and the capabilities of Equity One, Inc. (77.66%), Ocwen Loan Servicing, LLC (22.17%) and Wells Fargo Bank, N.A. (0.16%) as Servicers as well as the integrity of the legal structure of the transaction. Wells Fargo Bank, N.A. will act as Master Servicer. HSBC Bank USA, N.A. will act as Trustee. The Trust will enter into an interest rate swap agreement with Lehman Brothers Special Financing Inc. (the Swap Provider) for the benefit of the certificate holders, commencing in May 2007 and terminating after the April 2012 distribution date. The Trust will pay a fixed payment at 5.10% 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 Lehman Brothers Special Financing Inc (the Cap Provider) for the benefit of the certificate holders, commencing in May 2007 and terminating after the April 2012 distribution date at a strike rate of 5.32%.

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 series 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 series 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 9.60% of the then-current balance of the mortgage loans but no less than 0.50% of original collateral balance.

The mortgage loans in the Underlying Trust were originated or acquired by ResMAE Mortgage Corporation (77.63%) and various other originators. As of the cut-off date (April 1, 2007), the aggregate principal balance of the mortgage loans is $1,144,802,765. The weighted-average mortgage rate is 8.281%, the weighted-average FICO is 629, and the weighted-average combined loan-to-value ratio is 90.10%.

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

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

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