Correction: Fitch Rts Merrill Lynch Mortgage Investors Ser 2002-AFC1.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 19, 2002

(In a press release from earlier, Fitch Ratings incorrectly listed the Merrill Lynch Mortgage Investors, Inc. $19.0 million class MV-2 as MV-1. The amended version follows.)

Merrill Lynch Mortgage Investors, Inc. $293.1 million Mortgage Loan Asset-Backed Certificates, Series 2002-AFC1, classes AF-1 through AF-3, the $146.8 million class AV-1 and the classes AF-IO and AV-IO are rated 'AAA' by Fitch Ratings. The $25.6 million class MF-1 and the $13.7 million class MV-1 are rated 'AA'. The $19.9 million class MF-2 and the $14.2 million class MV-2 are rated 'A'. Additionally, the $20.9 million class BF-1 and the $9.3 million class BV-1 are rated 'BBB'.

The deal has two certificate groups. The Group 1 certificates are backed by fixed rate loans and the Group 2 certificates are backed by variable rate loans. The 'AAA' rating on the Group 1 senior certificates reflects the 22.90% credit enhancement provided by the 6.81% class MF-1, the 5.29% class MF-2, the 5.55% class BF-1 and the 4.46% initial overcollateralization (OC) with a target overcollateralization of 5.25%. The 'AAA' rating on the Group 2 senior certificates reflects the 25.00% credit enhancement provided by the 7.00% class MV-1, the 7.25% class MV-2, the 4.75% class BV-1 and the 6.00% initial overcollateralization (OC) with a target overcollateralization of 6.00%. All certificates have the benefit of monthly excess interest, which initially for Group I & II is approximately 5.12% and 6.33% respectively.

Group I is a pool of 6,693 fixed rate residential mortgage loans totaling $376.3 million. The weighted average combined original loan-to-value ratio (WA CLTV) for the Group I mortgage loans is approximately 77.09% and the weighted average remaining amortization term (WAM) is approximately 245 months. The weighted average coupon (WAC) is 10.49% and the average balance is $56,228.40. Approximately 27.51% of the loans are balloon loans, 83.10% are simple interest loans and 77.65% of the loans have prepayment penalties. The three states that represent the largest portion of loans are New York (12.66%), Oregon (8.76%), and Michigan (5.18%).

Group II is a pool of 2,058 adjustable-rate residential mortgage loans totaling $195.6 million. The WA CLTV for Group II is approximately 80.04% and the WAM is approximately 351 months. The WAC is 10.98% and the average balance is $95,061.33. Approximately 0.38% are simple interest loans and 71.48% of the loans have prepayment penalties. The three states that represent the largest portion of loans are New York (12.07%), Michigan (9.12%) and New Jersey (8.33%). All Group II loans have a semi-annual adjustment date with 74.96% of the pool having an initial fixed period for 2 years, and 25.04% of the pool having an initial fixed period for 3 years. The weighted average gross margin is 6.39% and the weighted average next adjustment date is 18 months following the Cut-off Date.

In addition, the ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Fairbanks Capital Corp. as servicer.