NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed four classes from RiverView HECM Trust 2008-1 as part of its continued surveillance. The classes represent a beneficial ownership interest in separate trust funds that include bonds that were recently affirmed.

Fitch has affirmed the following ratings:

RiverView HECM Trust 2008-1

--Class A-1 (76942RAA9) at 'Asf'; Outlook Stable;

--Class A-2 (76942RAB7) at 'Asf'; Outlook Stable;

--Class A-3 (76942RAC5) at 'Asf'; Outlook Stable;

--Class A-4 (76942RAD3) at 'Asf'; Outlook Stable.

KEY RATING DRIVERS

The underlying securities are four HECM Reverse Mortgage transactions from the 2006 and 2007 vintages that are each comprised of a mortgage pool of home equity conversion mortgages (HECM) that are insured by the Federal Housing Administration (FHA) and secured by one to four family, first lien, residential properties.

The rating actions on RiverView HECM Trust 2008-1 reflect the ratings on the underlying classes, since the Re-Remic structure does not provide additional support to the deal. Fitch affirmed the underlying classes to 'Asf' Outlook Stable on June 4, 2014. A press release detailing Fitch's rating actions on the HECM Reverse Mortgage transactions can be found at 'www.fitchratings.com' by performing a title search for 'Fitch Affirms 6 Classes and Downgrades 1 from 6 HECM Reverse Mortgage Transactions'.

RATING SENSITIVITIES

Fitch analyzes each bond in the 'Bsf' to 'AAAsf' scenarios to determine the likelihood of full principal recovery and interest. The scenario analysis incorporates Fitch's market value decline assumptions, probability of a loan of taking longer than six months to sell from REO, and the probability of a HUD appraisal being lower than the liquidation price.

The analysis includes rating stress scenarios from 'Bsf' to 'AAAsf'. The 'Bsf' scenario is intended to be the most-likely base-case scenario. Rating scenarios above 'Bsf' are increasingly more stressful and less-likely outcome. The primary driver of the loss scenarios is the home price forecast assumption. In the 'Bsf' scenario, Fitch assumes home prices decline 10% below their long-term sustainable level. The home price decline assumption is increased by 5% at each higher rating category up to a 35% decline in the 'AAAsf' scenario.

The ratings of bonds currently rated 'Bsf' or higher will be sensitive to future mortgage borrower behavior, which historically has been strongly correlated with home price movements. Despite recent positive trends, Fitch currently expects home prices nationally to decline further before reaching a sustainable level. While Fitch's ratings reflect this home price view, the ratings of outstanding classes may be subject to revision to the extent actual home price and mortgage performance trends differ from those currently projected by Fitch.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. RMBS Surveillance Criteria' (Oct. 10, 2013);

--'U.S. Residential Mortgage Re-REMIC Criteria' (Aug. 9, 2013);

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 14, 2014).

Applicable Criteria and Related Research:

U.S. RMBS Surveillance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720170

U.S. Residential Mortgage Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715703

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=832938

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