Fitch Rates CitiMortgage Alt-A Servicer 'RPS1'.

NEW YORK -- Fitch Ratings assigns CitiMortgage Inc. (CitiMortgage) the residential primary servicer rating of 'RPS1' for Alt-A product. In addition, Fitch affirms CitiMortgage's residential primary servicer rating for prime product of 'RPS1' and the residential master servicer rating of 'RMS1-'.

The primary servicer ratings are based on the company's seasoned and tenured management team, superior technology platform, strong default management experience, and tightened risk management policies and procedures. The master servicer rating is based on the company's continued effective performance in managing its $8.8 billion master servicing portfolio as well as the numerous efficiencies and enhanced reporting capabilities completed over the last year. All of the ratings reflect the financial strength of its parent Citigroup, Inc., which is rated 'AA+' by Fitch.

As of June 30, 2004, CitiMortgage was the sixth leading mortgage servicer, and primary serviced a portfolio of over 1.5 million loans totaling over $221 billion. This was an increase of over 7% in loan volume and 19% in dollar volume since Fitch's last review. Over the last year, the company has tightened its procedures and controls and enhanced its already robust technology platform. The company has also continued to enhance its performance by leveraging synergies throughout the organization, and is prepared to continue to capitalize on its brand image via cross-selling opportunities for other Citigroup products.

CitiMortgage's master servicing division serviced over 66,000 loans totaling approximately $8.8 billion as of June 30, 2004. This was a decrease of approximately 15% in both loan and dollar volume since Fitch's last review. The decrease has been attributed to shrunken client portfolios during the refinance boom period. Over the past year, the division has made various enhancements throughout the investor accounting department to streamline financial reporting and eliminate manual processes. These efficiencies continue to yield economies of scale throughout the division.

Since Fitch's last review, CitiMortgage has acquired Principal Residential Mortgage, Inc. (PRMI), headquartered in Des Moines, IA. PRMI originates prime quality loans which are typically conventional, conforming, fixed-rate mortgages. PRMI's estimated originations volume for 2004 is $25.7 billion, with a servicing portfolio of over $115 billion. The acquisition is expected to complement the existing geographic distribution in originations and servicing at CitiMortgage in addition to expanding its franchise.

Fitch believes that CitiMortgage is well positioned to integrate the PRMI platform into its servicing operations. CitiMortgage has advised Fitch that it has copious systems capacity, sufficient staffing levels, and that it has performed the necessary testing in order to ensure a seamless conversion in January 2005. However, Fitch will continue to monitor CitiMortgage's progress in managing its portfolio growth initiatives, as well as any potential impact on its operations as a result of its recent acquisition.

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 Research on 'Rating Residential Loan Servicers,' dated Feb. 21, 2003, available on Fitch's web site at www.fitchratings.com.