Amortizing Residential Collateral Trust Series 2002-BC9 Rated By Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 4, 2002

Amortizing Residential Collateral Trust's (ARC) $566.06 million pass-through certificates, series 2002-BC9 classes A1, A2 and A-IO certificates are rated 'AAA' by Fitch Ratings. In addition, Fitch rates the $35.4 million class M1 certificates and $30.4 million class M2 certificates 'AA', $22.2 million class M3 certificates 'A', $8.4 million class M4 certificates 'BBB', and $6.7 million class 'B' certificates 'BBB-'.

The 'AAA' rating on the senior certificates reflects the 16% total credit enhancement provided by the 5.25% class M1, 4.50% class M2, 3% class M3, 1.25% class M4, 1% class B as well as the 1% initial overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Aurora Loan Services as master servicer. The Murrayhill Company will monitor the deal and make recommendations to the primary servicers regarding certain delinquent and defaulted mortgage loans.

The mortgage pool consists of 4,797 fixed- and adjustable-rate, fully-amortizing and balloon, first and second lien conventional residential mortgage loans having an original term of no more than 30 years. The cut-off date balance of the pool is approximately $673,879,036. The fixed-rate mortgage loans make up 25.24% of the pool and the adjustable-rate mortgage loans account for the remaining 74.76% of the pool. Approximately 95.06% of the mortgage loans are secured by first mortgages and approximately 4.94% are secured by second mortgages. The mortgage loans will be divided into two pools. Pool 1 will consist of the mortgage loans with original principal balances that do not exceed the applicable Fannie Mae limit. Pool 2 will consist of mortgage loans with original principal balances that may be less or in excess of those loan amount limitations.

Approximately 49.78% of the first lien mortgage loans in pool 1 and approximately 47.71% of the first lien mortgage loans in pool 2 are 80+ loan-to-value (LTV) loans. Lehman Capital has assigned to the trust fund a loan-level primary mortgage insurance policy to each of the two pools through Mortgage Guaranty Insurance Corporation. 70.89% of the 80+ LTV loans in pool 1 and 48.69% of the 80+ LTV loans in pool 2 are covered by this policy.

Principal and interest payments will be distributed on the 25th day of each month commencing in December 2002. Distributions of principal and interest on the class A1 certificates will be based primarily on collections from the pool 1 mortgage loans. Distributions of principal and interest on the class A2 certificates will be based primarily on collections from the pool 2 mortgage loans. Distributions of interest on the class A-IO certificates will be based on collections from both mortgage pools. Distributions of principal and interest on the class M1, M2, M3, M4 and B certificates will be based on collections from both mortgage pools. Interest will be paid to the class A1 and A2 certificates, followed by interest to the classes M1, M2, M3, M4 and B certificates. Unless paid down to zero, principal will be paid exclusively to the class A1 and A2 certificates until the step-down date has been reached. After the step-down date, and provided that a trigger event has not occurred, principal payments may also be distributed to the subordinate certificates.

Approximately 33.11%, 21.55%, 19.82% and 10.09%, respectively, of the loans were originated or acquired in accordance with the underwriting guidelines of BNC Mortgage, Inc., Fieldstone Mortgage Company, Finance America, LLC and Provident Bank for subprime quality mortgage loans. The remainder of the loans were originated by banks, savings and loan institutions and other mortgage lending companies in accordance with their subprime underwriting guidelines. Subprime mortgage loans are generally made to borrowers who do not qualify for financing under conventional underwriting criteria due to prior credit difficulties and/or the inability to satisfy conventional documentation standards, and/or conventional debt-to-income ratios. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for these attributes. For federal income tax purposes, multiple real estate mortgage investment conduit (REMIC) elections will be made with respect to the trust estate.