Correct: Fitch Publishes Research Report on Status of Manufactured Housing Portfolios.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 6, 2002

(In a press release issued Friday, May 3, there was an incorrect date mentioned. The amended press release follows.)

Fitch Ratings-New York-May 3, 2002: In the mid-1990's, manufactured housing lending was viewed as a profitable and growing area. As a result, numerous lenders entered the market between 1995 and 1997. Relaxed underwriting, increased inventories and compression in margins has resulted in a severe downturn of the entire industry. As of January 2002 an overwhelming majority of the lenders are no longer in the manufactured housing business. While some of the players exited the business entirely, closing both their origination and servicing platforms, the majority, continue to service existing portfolios. A new report published by Fitch Ratings focuses on the status of numerous manufactured housing portfolios and the servicing transfers that have taken place.

Upon entrance to this market, many of the lenders did not fully realize that the manufactured housing asset requires unique handling in many areas of servicing. In particular, there is a heavy reliance upon a dealer based network in order to obtain adequate recovery rates on repossessed homes. Additionally, the repossession process requires a regional approach to servicing not necessarily known by mortgage servicers. Difficulties in servicing this unique asset are discussed throughout the report.

While there are subtle differences in the performance of manufactured housing portfolios, the general trends have been similar for all issuers. Liberal underwriting and the challenges associated with servicing this unique asset have lead to higher defaults, loss severities and losses than first estimated.

While performance is far worse than the level originally expected for the new issuers, more established lenders have not been immune to the problems in the industry. After taking significant writedowns and citing profitability concerns GreenPoint Credit exited the business in January 2002. Fitch is particularly concerned with the current credit quality of Conseco Finance Corp.

Significant pressures still pervade the manufactured housing industry, most notably the glut of repossessed homes. Many of the remaining players are

financially weak and it remains to be seen whether they can survive at all.

A copy of 'Manufactured Housing Loan Portfolios: Where Are They Now?' is available on Fitch Ratings' web site at 'www.fitchratings.com' or by contacting Market Services at 1-800-853-4824.