Fitch Affirms M&T Mortgage's Residential Primary Servicing Rating.

NEW YORK -- Fitch Ratings affirms M&T Mortgage Corporation's (MTMC) 'RPS2' residential primary servicer rating for prime product. The rating is based on MTMC's experienced management team, effective loan administration procedures, and reliable default management practices. The rating also reflects the financial strength of MTMC's parent, M&T Bank, which is rated 'A-' with a Stable Rating Outlook by Fitch.

Located in Buffalo, NY, MTMC is a wholly owned subsidiary of M&T Bank, a New York chartered commercial bank and subsidiary of M&T Bank Corporation (NYSE:MTB), a large U.S. bank holding company with assets totaling over $55 billion. As of Dec. 31, 2005, MTMC serviced a portfolio of over 170,000 residential loans totaling more than $17.2 billion, maintaining a 9.5% growth rate over 2004. MTMC's portfolio is composed of conforming conventional, Federal Housing Authority/Veterans Administration (FHA/VA) and Alt-A loans, in addition to residential mortgage-backed securities (RMBS), its owned portfolio, and private investors.

MTMC continues to refine its servicing platform through operational and technological improvements that enhance efficiencies and productivity of its operations. In 2005, the company implemented a number of automated processes within its loan administration and default management areas to improve its platform including the installation of Fidelity Information Systems' Director module. The company actively seeks opportunities to leverage its operations and has combined various consumer and mortgage functions to achieve synergies and implement best practices throughout the servicing organization. The company has a dynamic cost management structure that includes actively outsourcing servicing functions where it sees a cost benefit advantage, keeping in-house those tasks that are considered core servicing processes. Further, MTMC appointed a new general auditor and revamped its risk assessment and risk ranking processes in additional to developing a long-term audit calendar. Fitch believes that MTMC will remain a successful residential mortgage servicer. However, Fitch will continue to monitor MTMC's ability to maintain performance while leveraging its operations and implementing its long-term business strategies.

Fitch Ratings 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 servicer rating program, please see Fitch's report 'Residential Mortgage Servicer Ratings', dated Feb. 21, 2003, which is available on Fitch's 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.