DBRS Rates American General Mortgage Loan Trust 2009-1

DBRS has today assigned the following ratings to the American General Mortgage Pass-Through
Certificates, Series 2009-1 issued by American General Mortgage Loan Trust 2009-1 (the Trust).

-- $634.9 million Class A-2* rated at BBB
-- $127.0 million Class A-3** rated at AAA
-- $127.0 million Class A-4** rated at AA (high)
-- $127.0 million Class A-5** rated at AA
-- $127.0 million Class A-6** rated at "A"
-- $127.0 million Class A-7** rated at BBB
-- $253.9 million Class A-8* rated at AA (high)
-- $380.9 million Class A-9* rated at AA
-- $507.9 million Class A-10* rated at "A"

This transaction closed on July 30, 2009. The ratings in this transaction reflect the credit enhancement provided by subordination, overcollateralization and monthly excess interest. The Exchangeable REMIC Certificates may be exchanged for the Exchangeable Certificates in the related combinations and vice versa, as described in the offering memorandum. DBRS previously assigned an AAA rating to the Class A-1 certificates. DBRS does not rate any other securities in this transaction.

The ratings on the notes also reflect the quality of the underlying assets and the capabilities of PennyMac Loan Services, LLC (PennyMac) as servicer and Select Portfolio Servicing, Inc. as back-up servicer. U.S. Bank National Association serves as trustee and The Bank of New York Mellon Trust Company, National Association serves as custodian.

Interest and principal payments collected from the mortgage loans are generally distributed on the 25th of each month and commenced in August 2009. Interest is first paid concurrently to the Class A certificates and then sequentially to the Class B certificates. Principal is paid on a sequential basis to the certificates until the principal balances have been reduced to zero.

As of the March 1, 2010, the Trust contained seasoned mortgage loans originated by Wilmington Finance, Inc. (66%), Morequity, Inc. (11%), Crossroads Mortgage, Inc. (4%) and various other originators. The loans were on average 57 months seasoned first-lien, fixed-rate Alt-A mortgages secured by one- to four-family residential properties. The loans had an aggregate principal balance of approximately $1,866,942,633, a weighted-average (W.A.) mortgage rate of 6.37% and a W.A. updated FICO score of 698.

As of March 1, 2010, 84% of the mortgage loans were current, 6% were 30 days delinquent, 3% were 60 days delinquent and 3% were 90+ days delinquent. 3% of the loans were in bankruptcy and less than 1% was in foreclosure and REO. In its analysis, DBRS reviewed all modified loans in conjunction with modification dates and pay histories. To the extent that a modified loan has not demonstrated a consistently improved payment pattern for a minimum of one year, DBRS reverted its status back to delinquent when assessing the default frequencies. For example, a loan that was modified five months ago and was 60 days delinquent before modification will be treated as 60 days delinquent in determining default frequencies. In addition, depending on the severity of the pay histories, DBRS would apply the same methodology to non-modified loans with a derogatory pay history (that was subsequently cured) on a case-by-case basis.

At origination, the W.A. combined loan-to-value (CLTV) ratio was 91%. DBRS calculated the current CLTV as 118%. In doing so, DBRS first updated properties to their present value based on the original property value and origination date using the Metropolitan Statistical Area (MSA) Case-Shiller home price indices. Then, DBRS further stressed the appraised values to the MSA-level housing trough based on the Case-Shiller home price projections for the next 12 months.

When performing cash flow analysis, DBRS ran 40 scenarios which included 10 prepayment assumptions, front- and back-loaded loss timing patterns, as well as upward and downward interest rate stresses. Given the amount of anticipated loan modifications, DBRS also ran various cash flow stresses assuming the collateral WAC may be reduced (“WAC deterioration”).

Note:

• denotes Exchangeable Certificate.
  ** denotes Exchangeable REMIC Certificate.

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

The applicable methodology is Rating U.S. Residential Mortgage-Backed Securities Transactions, which can be found on our website under Methodologies.

This is a Structured Finance rating.