Chase Funding Inc., Series 2001-C2 Rated By Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 28, 2001

Chase Funding Loan Acquisition Trust (CFLAT) series 2001-C mortgage loan asset-backed certificates are rated by Fitch as follows:

Group I Certificates:

-- $402,050,000 classes IA-1 through IA-5 `AAA';

-- $10,750,000 class IM-1 `AA';

-- $8,600,000 class IM-2 `A';

-- $6,450,000 class IB `BBB'.

Group II Certificates:

-- $462,075,000 classes IIA-1 `AAA';

-- $15,150,000 class IIM-1 `AA';

-- $13,887,500 class IM-2 `A';

-- $11,362,500 class IIB `BBB'.

The 'AAA' rating on the senior certificates IA-1 through IA-5 reflects the 6.50% subordination provided by classes IM-1, IM-2, and IB, monthly excess interest and future overcollateralization (OC) of 0.50%. The 'AA' rating on the class IM-1 reflects the 4% subordination provided by classes IM-2 and IB, monthly excess interest and future OC. The 'A' rating on the class IM-2 reflects the 2% subordination provided by the class IB, monthly excess interest and future OC. The 'BBB' rating on the class IB reflects the credit enhancement provided monthly excess interest and future OC.

The 'AAA' rating on the senior certificate IIA-1 reflects the 8.50% subordination provided by classes IIM-1, IIM-2, and IIB, monthly excess interest and future overcollateralization (OC) of 0.50%. The 'AA' rating on the class IIM-1 reflects the 5.50% subordination provided by classes IIM-2 and IIB, monthly excess interest and future OC. The 'A' rating on the class IIM-2 reflects the 2.75% subordination provided by the class IIB, monthly excess interest and future OC. The 'BBB' rating on the class IIB reflects the credit enhancement provided monthly excess interest and future OC.

The ratings on the certificates also reflect the quality of the home equity loans, the primary mortgage insurance provided by Mortgage Guaranty Insurance Corporation on qualified loans, with coverage down to a 65% loan-to-value and the sufficient amounts of credit enhancement available. In addition the ratings reflect the soundness of the legal and financial structures and the capabilities of Chase Manhattan Mortgage Corporation as servicer of the loans and The Murrayhill Company as loss mitigation advisor.

The Group I and Group II certificates will be collateralized by a pool of fixed-rate mortgage loans and a pool of adjustable-rate mortgage loans, respectively. Each pool will consist of first lien mortgage loans on real properties, including single-family residences, two- to four-family dwelling units, attached planned unit developments, condominiums and small mixed-use properties. The weighted average combined loan-to-value ratio for the Group I and Group II mortgage loans is approximately 77.96% and 78.51%, respectively. The weighted average coupon (WAC) for the Group I and Group II mortgage loans is approximately 9.63% and 9.81%, respectively.

Interest and principal payments will be distributed on the 25th day of each month commencing in July 2001. Interest and then principal will be paid sequentially first to the class A certificates, then to the M-1, M-2, and B certificates. Payments of principal will not be made to the subordinate certificates until a required step-down date has occurred and certain performance triggers have been met.

For more detailed collateral profile and structure information, please reference the related fact sheet under 'New Issue Reports' at Fitch's Web site at 'www.fitchratings.com'.