Fitch Downgrades $2.3B from 2 Washington Mutual 2007 1st Lien Subprime Deals

NEW YORK--(Business Wire)--
Fitch Ratings has taken the following rating actions on Washington
Mutual (WAMU) mortgage pass-through certificates. Unless stated
otherwise, any bonds that were previously placed on Rating Watch
Negative are now removed. Downgrades total $2.3 billion. Additionally,
$1.3 billion was placed on Rating Watch Negative. Break Loss
percentages (BL) and Loss Coverage Ratios (LCR) for each class are
included with the rating actions as follows:

WaMu asset-backed certificates, WaMu series 2007-HE2

--$444.1 million class I-A downgraded to 'B' from 'A' (BL: 32.60,
LCR: 0.94 );

--$288.1 million class II-A1 downgraded to 'AA' from 'AAA',
remains on Rating Watch Negative (BL: 50.65, LCR: 1.47 );

--$125.3 million class II-A2 downgraded to 'BBB' from 'AAA' (BL:
42.46, LCR: 1.23 );

--$199.4 million class II-A3 downgraded to 'BBB' from 'AAA',
remains on Rating Watch Negative (BL: 34.81, LCR: 1.01 );

--$118.0 million class II-A4 downgraded to 'B' from 'A' (BL:
31.61, LCR: 0.92 );

--$51.0 million class M-1 downgraded to 'CCC' from 'BBB+' (BL:
28.00, LCR: 0.81 );

--$44.6 million class M-2 downgraded to 'CC' from 'BBB' (BL:
24.75, LCR: 0.72 );

--$27.1 million class M-3 downgraded to 'CC' from 'BBB-' (BL:
22.68, LCR: 0.66 );

--$23.9 million class M-4 downgraded to 'CC' from 'BB' (BL: 20.71,
LCR: 0.6 );

--$23.1 million class M-5 downgraded to 'CC' from 'B' (BL: 18.74,
LCR: 0.54 );

--$21.5 million class M-6 downgraded to 'C' from 'B' (BL: 16.89,
LCR: 0.49 );

--$20.7 million class M-7 downgraded to 'C' from 'CCC' (BL: 15.19,
LCR: 0.44 );

--$12.7 million class M-8 downgraded to 'C' from 'CCC' (BL: 14.20,
LCR: 0.41 );

--$17.5 million class M-9 downgraded to 'C' from 'CCC' (BL: 13.07,
LCR: 0.38 );

Deal Summary

--Originators: WAMU: 100%

--60+ day Delinquency: 19.77%

--Realized Losses to date (% of Original Balance): 1.07%

--Expected Remaining Losses (% of Current balance): 34.50%

--Cumulative Expected Losses (% of Original Balance): 32.91%

WaMu asset-backed certificates, WaMu series 2007-HE3

--$342.5 million class I-A1 downgraded to 'BBB' from 'AA-',
remains on Rating Watch Negative (BL: 36.94, LCR: 1.15 );

--$123.3 million class II-A1 rated 'AAA', remains on Rating Watch
Negative (BL: 57.19, LCR: 1.78 );

--$51.4 million class II-A2 downgraded to 'BB' from 'AAA' (BL:
30.70, LCR: 0.96 );

--$85.5 million class II-A3 downgraded to 'BBB' from 'AAA',
remains on Rating Watch Negative (BL: 38.75, LCR: 1.21 );

--$33.1 million class II-A4 downgraded to 'BBB' from 'AA-',
remains on Rating Watch Negative (BL: 36.49, LCR: 1.14 );

--$184.2 million class II-A5 downgraded to 'BBB' from 'AA-',
remains on Rating Watch Negative (BL: 36.49, LCR: 1.14 );

--$53.6 million class M-1 downgraded to 'B' from 'A+' (BL: 31.37,
LCR: 0.98 );

--$37.5 million class M-2 downgraded to 'CCC' from 'A-' (BL:
27.73, LCR: 0.86 );

--$21.9 million class M-3 downgraded to 'CCC' from 'BBB+' (BL:
25.53, LCR: 0.8 );

--$19.0 million class M-4 downgraded to 'CC' from 'BBB' (BL:
23.53, LCR: 0.73 );

--$19.0 million class M-5 downgraded to 'CC' from 'BBB-' (BL:
21.46, LCR: 0.67 );

--$15.0 million class M-6 downgraded to 'CC' from 'BB' (BL: 19.70,
LCR: 0.61 );

--$16.1 million class M-7 downgraded to 'CC' from 'B' (BL: 17.74,
LCR: 0.55 );

--$10.9 million class M-8 downgraded to 'CC' from 'B' (BL: 16.53,
LCR: 0.52 );

--$16.1 million class M-9 downgraded to 'C' from 'B' (BL: 15.07,
LCR: 0.47 );

Deal Summary

--Originators: WAMU: 100%

--60+ day Delinquency: 14.65%

--Realized Losses to date (% of Original Balance): 0.51%

--Expected Remaining Losses (% of Current balance): 32.07%

--Cumulative Expected Losses (% of Original Balance): 30.59%

The rating actions are based on changes that Fitch has made to its
subprime loss forecasting assumptions. The updated assumptions better
capture the deteriorating performance of pools from 2007, 2006 and
late 2005 with regard to continued poor loan performance and home
price weakness. Additional details are available in the following
research, available at www.fitchratings.com

--'Fitch Places $139B U.S. Subprime RMBS On Watch Negative on
Worsening Mortgage Performance' (Feb. 1, 2008);

--'Downgrade Criteria for Recent Vintage U.S. Subprime RMBS' (Aug.
8, 2007);

--'U.S. Subprime RMBS/HEL Upgrade/Downgrade Criteria' (June 12,
2007).

All of Fitch's ratings criteria for U.S. subprime RMBS available
at www.fitchratings.com/subprime. For a list of deals currently under
analysis please visit www.fitchratings.com/smartview.

Further information regarding current delinquency, loss, and
credit enhancement statistics is also available at
www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Tara Sweeney, 212-908-0347
Michele Patterson, 212-908-0779
or
Media Relations:
Sandro Scenga, 212-908-0278

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