Fitch Issues Servicer Rtgs To Security National Servicing Corp.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 30, 2001

Fitch assigns Security National Servicing Corporation (Security National) its `RPS3' residential primary servicer rating for subprime and home equity products, and its `RSS3' rating for residential special servicer. The `RPS3' rating is based on the company's loan administration, collections, and investor reporting capabilities. The `RSS3' rating is based on Security National's track record in non-performing loan resolutions and liquidations and REO management. Both ratings also reflect the strength of the company's proprietary technology, experienced and tenured management team, and servicing processes and controls that are uniquely suited to serve the company's business strategy. Security National provides loan servicing for a group of affiliated limited partnerships and limited liability companies which are consolidated into Security National Holding Company, LLC (SNHC). SNHC, through its various affiliates acquires sub- and non-performing residential mortgages, commercial mortgages, real estate and consumer loans. The company's roots date back to 1987 when the first partnership was formed to acquire the loan portfolio of a failed bank from the FDIC. The company's consistently positive income history is directly attributable to its loan acquisition strategies and the performance of its servicing platform, which is headquartered in Eureka, CA with offices in Sacramento, CA, Baton Rouge, LA, Piscataway, NJ, and Denver, CO. As of Dec. 31, 2000, Security National's servicing portfolio consisted of over 100,000 loans with 14,671 residential mortgage loans with a balance of $606 million, of which, approximately 71% were subprime loans, with $185 million in four securitized pools. Fitch's expectation of the company's ability to maintain current performance levels in its servicing platform are based on management's demonstrated commitment to the platform as indicated by its investments in technology, improved integration among servicing offices, and increased management oversight of critical servicing processes. As a `niche' player in the sub and non-performing loan market, the company's servicing processes and technology are designed to meet the unique requirements of its servicing portfolio. Fitch will continue to monitor the company's performance as the company seeks to increase its acquisitions of residential mortgage loans. Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on the review and rating process for servicers, see Fitch's Servicer Rating Criteria research report titled `Rating Residential Loan Servicers' dated August 3, 1999, available on Fitch's web site at `www.fitchratings.com'.