Fitch Affirms Green Tree Servicing's Resi & Special Servicer Ratings.

NEW YORK -- Fitch Ratings affirms Green Tree Servicing LLC's (Green Tree) 'RPS3+' residential primary servicer ratings for subprime, high loan-to-value (HLTV), and home equity/home equity lines of credit (HE/HELOC) products and its 'RSS3+' special servicer rating. The primary servicer ratings reflect Green Tree's seasoned executive and servicing management team, capable loan administration and default management procedures, effective use of proprietary behavior models, and continued investment in its technology infrastructure. The special servicer rating reflects the company's ability to effectively manage and liquidate nonperforming residential mortgage loans and REO assets.

Green Tree is a privately owned financial services company headquartered in St. Paul, Minnesota, servicing a range of financial products including subprime, HE, HLTV, manufactured housing (MH), and consumer finance loans. Green Tree was founded in June 2003 through an asset sale as part of Conseco, Inc.'s bankruptcy restructuring plan and is owned by Green Tree Investment Holdings, a partnership comprising two large private investors. Green Tree's subprime, HE/HELOC, and HLTV mortgage servicing portfolio decreased by 19% in loan volume and 22% in unpaid principal balance to approximately 81,200 loans totaling $2.8 billion as of June 30, 2006 from 100,000 loans totaling $3.6 billion as of July 31, 2005. Management indicated that the company's acquisition activity will be focused on MH servicing rights, MH whole loan portfolios and securities, and HE securities and whole loan portfolios. In addition, Green Tree has been exercising its call options on HE transactions and re-securitizing the loans.

Green Tree's servicing operations are headquartered in Tempe, Arizona with customer service located in Rapid City, South Dakota and cash operations, compliance/legal, treasury and investor reporting located in St. Paul, MN. The servicing management team is well seasoned, averaging over 17 years of industry experience and over seven years of company tenure. Since Fitch's prior review, Green Tree completed the consolidation of its customer service department in Rapid City to handle all loan products using standardized processes and monitoring. The company also realigned its front-end collections department so that one unit allocated between Tempe and Rapid City handles inbound collection calls for 1 to 29 day delinquencies for all products. Outbound collection calls continue to be split between Tempe for subprime, HE/HELOC, and HLTV loans and Regional Operations for MH loans. In continuing its realignment, the company consolidated its bankruptcy department for all asset classes in Rapid City using one standard process and system. In addition, Green Tree completed the implementation of call monitoring software and updated its dialer technology.

Fitch's review confirmed that Green Tree has the requisite management, training, technology, and controls necessary to expand its portfolio and client base. However, Fitch will continue to monitor the company's effectiveness in managing loan performance while pursuing its growth initiatives as it continues to adapt to third-party servicing requirements, which may not include some of Green Tree's common loss mitigation techniques such as automatic deferrals and modifications.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential mortgage servicer rating program, please see Fitch's report, 'Rating US Residential Mortgage Servicers', dated June 21, 2006 on Fitch's website 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.