Correction - Fitch Affirms 30 & Upgrades 1 RMBS Class from 6 Mellon Issues.

NEW YORK -- (This is a correction for a release that was published eariler today. It contains the amended class B-5 rating in the Series 1998-A group.)

Fitch Ratings has taken the following rating actions on the Mellon Residential Funding Corp issues listed below:

Series 1998-A

-- Class B-1 affirmed at 'AAA';

-- Class B-2 affirmed at 'AA';

-- Class B-3 affirmed at 'BBB';

-- Class B-4 affirmed at 'B';

-- Class B-5 remains at 'C', Distressed Recovery (DR) Rating downgraded to 'DR6' from 'DR5'.

Series 1998-2

-- Classes A-11, A-12 affirmed at 'AAA';

-- Class B-1 affirmed at 'AAA';

-- Class B-2 affirmed at 'AAA';

-- Class B-3 affirmed at 'AAA';

-- Class B-4 affirmed at 'AAA';

-- Class B-5 affirmed at 'AA+'.

Series 1998-TBC1

-- Class A-3 affirmed at 'AAA';

-- Class B-1 affirmed at 'AAA';

-- Class B-2 affirmed at 'AAA';

-- Class B-3 affirmed at 'AAA'.

Series 1999-TBC1

-- Class A-3 affirmed at 'AAA';

-- Class B-1 affirmed at 'AAA';

-- Class B-2 affirmed at 'AAA';

-- Class B-3 affirmed at 'AAA'.

Series 1999-TBC2

-- Class A-3 affirmed at 'AAA';

-- Class B-1 affirmed at 'AAA';

-- Class B-2 affirmed at 'AAA';

-- Class B-3 affirmed at 'AAA';

-- Class B-5 upgraded to 'AAA' from 'AA+'.

Series 1999-TBC3

-- Class A-2 affirmed at 'AAA';

-- Class B-1 affirmed at 'AAA';

-- Class B-2 affirmed at 'AAA';

-- Class B-3 affirmed at 'AA+';

-- Class B-4 affirmed at 'AA-';

-- Class B-5 affirmed at 'BBB+'.

The collateral of the above transactions consists of prime quality fixed- and adjustable-rate, first lien mortgage loans secured by one- to four-family residential properties, with the exception of series 1998-A, which consists of Alt-A, 30-year, fixed-rate mortgage loans.

The affirmations on the above classes reflect adequate relationships of credit enhancement (CE) to future loss expectations and affect approximately $205.67 million of the outstanding certificates.

The upgrade reflects an improvement in the relationship of CE to future loss expectations and affects $1.36 million of the outstanding certificates. Currently, the B-5 class of 1999-TBC2 is benefiting from 4.33% CE (originally 0.25%) in the form of subordination.

The CE levels for all the affirmed classes have increased from the original levels, and the collateral performance has been in line with Fitch's expectations. As of the August 2006 distribution date, the pools are seasoned from a range of 100 (series 1998-A) to 83 months (series 1999-TBC3). The transactions have pool factors (current principal balance as a percentage of original) ranging from 1% (series 1998-2) to 38% (series 1999-TBC3). Cumulative losses as a percent of the original collateral balance of series 1998-A and series 1999-TBC1 are 0.99% and 0.08%, respectively. The remaining transactions have not experienced any losses to date.

Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at 'www.fitchratings.com'.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.