Fitch Rates 71 Classes from 11 Delta Funding & 3 Renaissance Mortgage Issues.

NEW YORK -- Fitch Ratings has taken rating action on the following Delta Funding Corporation (Delta) and Renaissance Mortgage Acceptance Corporation (Renaissance) issues:

Delta Funding series 1997-2

-- Classes A-5, A-6, and A-7 affirmed at 'AAA';

-- Class M-1 downgraded to 'A' from 'AA';

-- Class M-2 downgraded to 'BB' from 'BBB+';

-- Class B-3 remains at 'C'.

Delta Funding series 1997-4 group F

-- Class M-1F upgraded to 'AAA' from 'AA';

-- Class M-2F upgraded to 'AA' from 'A';

-- Class B-1F affirmed at 'BBB'.

Delta Funding series 1997-4 group A

-- Class B-1A affirmed at 'BBB'.

Delta Funding series 1998-1 group 1

-- Classes A-5F and A-6F affirmed at 'AAA';

-- Class M-1F upgraded to 'AAA' from AA+';

-- Class M-2F affirmed at 'A+';

-- Class B-1F affirmed at 'BBB'.

Delta Funding series 1998-1 group 2

-- Class B-1A rated 'B-' is removed from Rating Watch Negative and affirmed.

Delta Funding series 1998-2 group 1

-- Class M-1F upgraded to 'AAA' from 'AA';

-- Class M-2F upgraded to 'A+' from 'A';

-- Class B-1F upgraded to 'BBB+' from 'BBB'.

Delta Funding series 1998-2 group 2

-- Class M-2A upgraded to 'AAA' from 'A'

-- Class B-1A remains at 'CCC'

Delta Funding series 1999-2

-- Classes A-1A, A-6F, and A-7F affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

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

-- Class B downgraded to 'CC' from 'CCC'.

Delta Funding series 1999-3

-- Classes A-1A, A-1F and A-2F affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

-- Class M-2 downgraded to 'BBB' from 'A';

-- Class B downgraded to 'C' from 'CCC'.

Delta Funding series 2000-1

-- Classes A-1A, A-5F and A-6F affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

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

-- Class B downgraded to 'CC' from 'B-'.

Delta Funding series 2000-2

-- Classes A-1A and A-6F affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

-- Class M-2 downgraded to 'BBB-' from 'A';

-- Class B remains at 'C'.

Delta Funding series 2000-3

-- Classes A-1A and A-6F affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

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

-- Class B affirmed at 'B-'.

Delta Funding series 2000-4

-- Class A affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

-- Class M-2 downgraded to 'CCC' from 'B';

-- Class B remains at 'C'.

Delta Funding series 2001-1

-- Classes A-1 and A-2 affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

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

-- Class B affirmed at 'BBB'.

Renaissance Mortgage series 2002-1

-- Classes A-1V and A-2F affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

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

-- Class B affirmed at 'BBB'.

Renaissance Mortgage series 2002-2

-- Class A affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

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

-- Class B affirmed at 'BBB'.

Renaissance Mortgage series 2002-3

-- Class A affirmed at 'AAA';

-- Class M-1 affirmed at 'AA';

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

-- Class B affirmed at 'BBB'.

The underlying collateral of these deals is a mix of both fixed- and adjustable-rate subprime mortgages.

The affirmations, representing 52 classes, affect approximately $499 million in principal. The upgrades, representing seven classes, affect approximately $59 million in principal, and the downgrades, representing eight classes, affect around $66.4 million.

The pool factors (principal outstanding as a percentage of the initial loan pool) on the above referenced transactions range from 3.55% (Delta Funding series 1998-1 group 2) to 36.33% (Renaissance Mortgage 2002-3).

The upgraded classes reflect positive collateral performance and, as a result, credit enhancement (CE) that ranges from 2 times (x) initial levels (Delta Funding series 1998-1 group 1) to approximately 15x initial levels (Delta Funding 1998-2 group 2).

The downgrades reflect substantial reductions in CE, particularly in the form of overcollateralization (OC). All of the pools that contain downgraded certificates have failed to maintain their respective OC targets. In the most severe examples (Delta Funding series 2000-2 and 2000-4), OC has been exhausted and subordinate certificates have suffered principal write-downs.

Fitch will continue to closely monitor these deals.

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