SABR LLC Trust 2006-FR1 – ‘8-K’ for 11/1/06

On:  Tuesday, 11/7/06, at 1:49pm ET   ·   For:  11/1/06   ·   Accession #:  1056404-6-3577   ·   File #:  333-123990-07

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Current Report   —   Form 8-K
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Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         7±    31K 

Document Table of Contents

UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION
  Washington D. C. 20549

  FORM 8-K

  CURRENT REPORT
    Pursuant to Section 13 or 15(d) of The
     Securities Exchange Act of 1934

November 1, 2006                                                                
Date of Report (Date of Earliest Event Reported)                                

Securitized Asset Backed Receivables LLC Trust 2006-FR1                         
(Exact name of Issuing Entity as specified in its charter)                      

Barclays Bank PLC                                                               
(Exact name of Sponsor as specified in its charter)                             

Securitized Asset Backed Receivables LLC                                        
(Exact name of Depositor as specified in its charter)                           

New York              333-123990-07            54-2193556                       
(State or Other       (Commission              54-2193557                       
Jurisdiction of        File Number)            54-2193558                       
Incorporation)                                 54-2193559                       
                        54-6703536
                           (IRS Employer
                                   Identification No.)

c/o Wells Fargo Bank, N.A.                                                      
9062 Old Annapolis Road                                                         
Columbia, MD                                         21045                      
(Address of Principal Executive Offices)             (Zip Code)                 

(410) 884-2000                                                                  
(Registrant's Telephone Number, including Area Code)                            

Not Applicable                                                                  
(Former Name or Former Address, if Changed Since Last Report)                   

Check the appropriate box below if the Form 8-K filing is intended to           
simultaneously satisfy the filing obligation of the Registrant under any        
of the following provisions (see General Instruction A.2. below):               

[ ] Written communications pursuant to Rule 425 under the Securities Act        
(17 CFR 230.425)                                                        

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act          
(17 CFR 240.14a-12)                                                     

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the         
Exchange Act(17 CFR 240.14d-2(b))                                       

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the         
Exchange Act(17 CFR 240.13e-4(c))                                       

Section 6 - Asset-Backed Securities                                             

Item 6.02 - Change in Servicer or Trustee                                       

        Barclays Capital Real Estate Inc. d/b/a  HomEq Servicing ("New HomEq")
replaced HomEq Servicing Corporation ("HomEq"), as servicer, effective as of    
November 1, 2006 (the "Closing Date"), pursuant to the transaction described    
below.                                                                          

      Wachovia Corporation ("Wachovia") and Barclays Bank PLC ("Barclays")
previously announced the sale of the U.S. sub-prime residential mortgage loan   
servicing business (the "Sub-Prime Servicing Business") of HomEq, a subsidiary  
of Wachovia, to Barclays pursuant to the Asset Purchase Agreement, dated as of  
June 22, 2006 (the "Purchase Agreement"), among Wachovia, HomEq, certain of     
Wachovia's other subsidiaries, and Barclays.                                    

Under the Purchase Agreement, HomEq agreed to sell to Barclays
substantially all of its assets and Wachovia and certain of its other           
subsidiaries agreed to sell to Barclays certain assets, related to the U.S. Sub-
Prime Servicing Business (collectively, the "Transaction").  Barclays now owns  
substantially all of the assets relating to HomEq's U.S. Sub-Prime Servicing    
Business and has agreed to assume certain liabilities related to those assets   
that may arise and pertain to the period after the Closing Date, while HomEq    
will retain those liabilities that may arise and pertain to the period prior to 
the Closing Date.  In connection with the Transaction, the rating agencies      
(a) assigned to New HomEq the same servicer ratings, without a downgrade, that  
were previously assigned to HomEq and (b) confirmed that the transfer of        
servicing to New HomEq in and of itself would not result in a downgrade,        
qualification or withdrawal of the then-current ratings of any asset-backed     
securities rated by them for which HomEq was a servicer.  New HomEq is an       
approved residential mortgage loan servicer for Fannie Mae, Freddie Mac and HUD 
and is licensed to service mortgage loans in each state where a license is      
required.                                                                       

        Pursuant to the Purchase Agreement, HomEq has assigned the pooling and
servicing agreement or related servicing agreement (the "PSA") to Barclays, and 
New HomEq will be required to continue to service the mortgage loans in         
accordance with the PSA, which is not being changed as a result of the          
Transaction.  Expenses relating to the Transaction and the transfer of the      
servicing platform to Barclays will not be an expense of the securitization     
trust or the related securityholders and, accordingly, no amounts are being set 
aside to cover such expenses.  No special backup servicing arrangements are     
being implemented as a result of the Transaction (other than those, if any,     
already provided for under the PSA).                                            

New HomEq is an indirect, wholly-owned subsidiary, and thus an
affiliate, of Barclays Bank PLC (provider of certain derivative contracts for   
the transaction) and is an affiliate, through common parent ownership, of       
Barclays Capital Inc. (the Underwriter) and Securitized Asset Backed Receivables
LLC (the Depositor).                                                            

 With respect to the servicing experience of New HomEq, Barclays
acquired the servicing platform and related assets and retained the key         
employees and management of HomEq.  As a result, there have been no material    
changes to the management or servicing platform of New HomEq in relation to     
HomEq.  Consequently, the information provided herein cumulatively reflects the 
experience of HomEq and its predecessor.  References below to HomEq's servicing 
experience and servicing portfolio will reflect the experience and portfolio    
acquired by HomEq as a result of the Purchase Transaction.                      

      New HomEq is a nationwide consumer loan servicing company, primarily
involved in mortgage loan servicing, with facilities in North Highlands,        
California;  Raleigh, North Carolina; and Boone, North Carolina. New HomEq is   
a subsidiary of  Barclays, a public limited company registered in England and   
Wales under number 1026167.  Barclays and its subsidiary undertakings (taken    
together, the "Group") is a major global financial services provider engaged    
in retail and commercial banking, credit cards, investment banking, wealth      
management and investment management services.  Based on the Group's unaudited  
financial information for the period ending June 30, 2006, the Group had total  
assets of approximately 986,375 million pounds (2005: 850,388 million pounds).  

        New HomEq's residential sub-prime and alternative servicing operations
are currently rated as "Strong" by Standard & Poor's Rating Services, a division
of The McGraw-Hill Companies, Inc. Fitch Ratings has rated New HomEq "RPS1" as a
primary servicer of residential Alt-A and sub-prime products, and "RSS1" as a   
special servicer.  Moody's Investors Service currently rates New HomEq "SQ1-" as
a primary servicer of residential subprime mortgage loans.  New HomEq is an     
approved Freddie Mac and Fannie Mae servicer.                                   

         Although Barclays Capital Real Estate Inc. did not have any significant
residential mortgage loan servicing experience prior to the Purchase            
Transaction, HomEq and its predecessors have been servicing residential mortgage
loans since 1967. At the end of 2002, HomEq's predecessors began acquiring      
servicing from third parties, and currently a substantial majority of the loans 
in HomEq's servicing portfolio are serviced for third parties, including loans  
in over 100 residential mortgage-backed securities transactions. HomEq has      
serviced prime, and non-prime mortgage loans and has experience acting as a     
special servicer performing collections, loss mitigation, default reporting,    
bankruptcy, foreclosure and REO property management.                            

 Currently, substantially all of New HomEq's servicing portfolio
consists of non-prime mortgage loans, represented by fixed-rate and adjustable- 
rate, first- and second-lien conventional mortgage loans. The following table   
reflects the size and composition of HomEq's servicing portfolio as of the end  
of each indicated period.                                                       

New HomEq Mortgage Loan Servicing Portfolio                                     
Servicing Portfolio Composition and Size                                        

                                                        [Enlarge/Download Table]

                                Aggregate             Aggregate            Aggregate              Aggregate       
                            Principal Balance     Principal Balance    Principal Balance      Principal Balance   
                                  as of                 as of                as of                  as of         
                              June 30, 2006       December 31, 2005    December 31, 2004      December 31, 2003   
                                                                                                                  
                           --------------------  --------------------  -------------------  ----------------------
Product Type                                                                                                      
  Fixed Rate 1st Lien       $10,806,139,118       $11,234,562,133      $15,826,596,449         $13,548,719,060    
  Fixed Rate 2nd Lien         2,098,987,266         1,916,187,771        2,448,415,562           2,294,855,204    
  ARM 1st Lien               29,393,219,272        31,639,566,303       24,343,482,623           8,109,636,856    
  Real Estate Owned (REO)       694,577,534           434,583,520          190,081,298             160,333,648    
                           --------------------  --------------------  -------------------  ----------------------
                           --------------------  --------------------  -------------------  ----------------------
       Total                $42,992,923,190       $45,224,899,727      $42,808,575,933         $24,113,544,768    
                           ====================  ====================  ===================  ======================


New HomEq's Delinquency and Foreclosure Experience                              

The following tables set forth the delinquency and foreclosure
experience of the mortgage loans serviced by New HomEq at the end of the        
indicated periods.  The indicated periods of delinquency are based on the number
of days past due on a contractual basis.  No mortgage loan is considered        
delinquent for these purposes until it has not been paid by the next scheduled  
due date.  New HomEq's portfolio may differ significantly from the mortgage     
loans in the mortgage loan pool in terms of interest rates, principal balances, 
geographic distribution, types of properties, lien priority, origination and    
underwriting criteria, prior servicer performance and other possibly relevant   
characteristics.  There can be no assurance, and no representation is made, that
the delinquency and foreclosure experience with respect to the mortgage loans in
the mortgage loan pool will be similar to that reflected in the table below, nor
is any representation made as to the rate at which losses may be experienced on 
liquidation of defaulted mortgage loans in the mortgage loan pool. The actual   
delinquency experience with respect to the mortgage loans in the mortgage loan  
pool will depend, among other things, upon the value of the real estate securing
such mortgage loans in the mortgage loan pool and the ability of the related    
borrower to make required payments.  It should be noted that if the residential 
real estate market should experience an overall decline in property values, the 
actual rates of delinquencies and foreclosures could be higher than those       
previously experienced by New HomEq. In addition, adverse economic conditions   
may affect the timely payment by borrowers of scheduled payments of principal   
and interest on the mortgage loans in the mortgage loan pool and, accordingly,  
the actual rates of delinquencies and foreclosures with respect to the mortgage 
loan pool.  Finally, the statistics shown below represent the delinquency       
experience for New HomEq's mortgage servicing portfolio only for the periods    
presented, whereas the aggregate delinquency experience with respect to the     
mortgage loans comprising the mortgage loan pool will depend on the results     
obtained over the life of the mortgage loan pool. Totals in the tables that     
follow may not sum due to rounding.                                             

New HomEq Mortgage Loan Servicing Portfolio                                     
Delinquencies and Foreclosures                                                  
(Dollar Amounts in Thousands)                                                   

                   As of June 30, 2006

                                                    Percent by
                       Number of    Principal        Principal
                        Loans       Balance          Balance
Current Loans..........          251,115   $34,907,556         81.19%           
Period of Delinquency                                                           
30 to 59 days.......           23,617     3,239,389          7.53%        
60 to 89 days.......            8,330     1,188,891          2.77%        
90 days or more.....            6,522       777,354          1.81%        
Total Delinquencies......         38,469     5,205,634         12.11%           

Foreclosures...........            9,991     1,389,980          3.23%           
Bankruptcies...........            9,787       795,176          1.85%           
Total Foreclosures and                                                          
Bankruptcies...........           19,778     2,185,155          5.08%           

Real Estate Owned                  6,155       694,578          1.62%           
Total Portfolio                  315,517   $42,992,923        100.00%           

                   As of December 31, 2005

                                                  Percent by
                      Number of    Principal       Principal
                       Loans       Balance         Balance
Current Loans..........          265,153   $37,124,345         82.09%           
Period of Delinquency                                                           
30 to 59 days.......           26,380     3,446,717          7.62%        
60 to 89 days.......            8,885     1,204,065          2.66%        
90 days or more.....            6,101       688,152          1.52%        
Total Delinquencies......         41,366     5,338,935         11.81%           

Foreclosures...........            9,674     1,255,477          2.78%           
Bankruptcies...........           13,092     1,071,560          2.37%           
Total Foreclosures and                                                          
Bankruptcies...........           22,766     2,327,037          5.15%           

Real Estate Owned                  4,395       434,584          0.96%           
Total Portfolio                  333,680   $45,224,900        100.00%           

                   As of December 31, 2004

                                                  Percent by
                      Number of    Principal       Principal
                       Loans       Balance         Balance
Current Loans..........          301,208   $37,671,124         88.00%           
Period of Delinquency                                                           
30 to 59 days.......           20,831     2,378,568          5.56%        
60 to 89 days.......            6,575       761,639          1.78%        
90 days or more.....            3,285       324,419          0.76%        
Total Delinquencies......         30,691     3,464,625          8.09%           

Foreclosures...........            7,006       703,929          1.64%           
Bankruptcies...........           12,181       778,816          1.82%           
Total Foreclosures and                                                          
Bankruptcies...........           19,187     1,482,745          3.46%           

Real Estate Owned                  2,528       190,081          0.44%           
Total Portfolio                  353,614   $42,808,576        100.00%           

                   As of December 31, 2003

                                                  Percent by
                      Number of    Principal       Principal
                       Loans       Balance         Balance
Current Loans..........          234,635   $21,488,618         89.11%           
Period of Delinquency                                                           
30 to 59 days.......           13,709     1,029,985          4.27%        
60 to 89 days.......            3,838       276,720          1.15%        
90 days or more.....            2,775       185,249          0.77%        
Total Delinquencies......         20,322     1,491,954          6.19%           

Foreclosures...........            5,101       363,205          1.51%           
Bankruptcies...........           11,322       609,434          2.53%           
Total Foreclosures and                                                          
Bankruptcies...........           16,423       972,639          4.03%           

Real Estate Owned                  2,597       160,334          0.66%           
Total Portfolio                  273,977   $24,113,545        100.00%           

New HomEq's Policies and Procedures                                             

      Upon the acquisition of servicing rights, New HomEq coordinates with
the prior servicer of the mortgage loans to achieve a transfer of servicing     
activities with minimal impact to mortgagors.  The transfer and boarding process
involves notifying the mortgagors of the servicing transfer, transferring       
electronic files containing loan set up information and a payment history, if   
applicable.  In addition, loan documents are stored either in hard copy or      
electronically imaged form for future review and reference.  All boarding       
activities are regularly reviewed to assure best practices are employed         
throughout the boarding process.                                                

    Once a mortgage loan has been boarded, New HomEq begins to collect
mortgage payments in adherence to the applicable servicing agreement and        
customary industry standards.  New HomEq's collections strategy is based on a   
predictive behavioral scoring system that enables collection efforts to be      
focused on mortgage loans that represent the greatest risks within the servicing
portfolio and is intended to address potential collection problems as soon as   
possible before they migrate into more costly delinquency, foreclosure and REO  
status. The predictive behavioral scoring system is integrated with a predictive
dialer and phone switch to facilitate incoming and outgoing calls with          
mortgagors.  Outgoing calls range from an introduction of New HomEq as servicer 
to advanced collection activities.  Incoming calls are directed by the phone    
switch based upon the status of the loan to the appropriate customer service or 
collections representative.                                                     

In the event collection efforts are not successful, New HomEq 
determines whether foreclosure proceedings are appropriate.  New HomEq considers
a number of factors, including the related mortgagor's payment history, such    
mortgagor's ability and willingness to pay, the condition and occupancy of the  
related property, the lien position of the mortgage loan and the amount of      
equity in the property.  New HomEq also considers the costs associated with     
taking possession, interest and expense carry, repairs and marketing.  Unless   
impractical, New HomEq seeks to reduce the cycle time and loss severity of      
foreclosure actions in a manner that meets or exceeds published Fannie Mae      
timelines.                                                                      

       If a borrower goes into bankruptcy, New HomEq will pursue appropriate
steps to process the case quickly in an effort to increase monthly cash flows   
and reduce loss severity, duration and servicing costs.  New HomEq maintains    
internal controls to monitor the status of all bankruptcies, whether handled    
internally or through a multi-state network of attorneys specializing in        
bankruptcy proceedings in the state of the mortgaged property. New HomEq        
utilizes electronic notifications and case management tools in connection with  
its bankruptcy account management.                                              

When New HomEq acquires title to a mortgaged property through 
foreclosure proceedings, it ascertains property occupancy, obtains appraisals   
and broker price opinions, determines property condition and whether the costs  
necessary to preserve or enhance property marketability are justified, lists the
property for sale and oversees the final disposition of the property.           

         New HomEq provides full escrow services, including property tax, hazard
insurance, flood insurance and lender-placed insurance services.  Most of these 
services are provided through third-party vendors that specialize in these      
service areas.  New HomEq conducts the initial and annual escrow analysis       
functions internally.  New HomEq monitors escrow activities on an ongoing basis.

       There have been no material changes in New HomEq's servicing policies
and procedures during the past three years.                                     

Prior Securitizations                                                           

   During the three years preceding the date of this Form 8-K, New HomEq has
not been terminated as a servicer in a residential mortgage loan securitization 
due to a servicing default or application of a servicing performance test or    
trigger.  During such time, New HomEq also neither has failed to make any       
required advance with respect to any issuance of residential mortgage backed    
securities nor disclosed  material  noncompliance with the servicing criteria   
applicable to any such securitization.                                          

SIGNATURES                                                                      

Pursuant to the requirements of the Securities Exchange Act of 1934, the        
registrant has duly caused this report to be signed on its behalf by the        
undersigned hereunto duly authorized.                                           

Securitized Asset Backed Receivables LLC                                        
(Depositor)                                                                     

By: /s/ John Carroll                                                            
By: John Carroll as Vice President and CFO                                      
Date: November 7, 2006                                                          

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing		Date		Other Filings
Filed on:		11/7/06		10-D
For Period End:		11/1/06
		6/30/06
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		12/31/05
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		12/31/03
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