Fitch Ratings Takes Action On Various IndyMac Home Equity Issues.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 18, 2003

Fitch Ratings has performed a review of IndyMac Bank Home Equity Asset-Backed Trust, series SPMD 2000-A, series 2000-B, series 2000-C and series 2001-A. Based on the initial review; the following rating actions have been taken:

Series 2000-A Group 1

-- Class BF, rated 'BBB', placed on Rating Watch Negative.

Series 2000-B Group 1

-- Class MF2, rated 'A', placed on Rating Watch Negative;

-- Class BF, rated 'BBB', placed on Rating Watch Negative.

Series 2000-B Group 2

-- Class BV, rated 'BBB', placed on Rating Watch Negative.

Series 2000-C Group 1

-- Class MF2, rated 'A', placed on Rating Watch Negative;

-- Class BF downgraded to 'CCC' from 'BBB'.

Series 2000-C Group 2

-- Class MV2, rated 'A', placed on Rating Watch Negative.

-- Class BV, rated 'BBB', placed on Rating Watch Negative.

Series 2001-A Group 1

-- Classes AF3 to AF6, rated 'AAA', placed on Rating Watch

Negative;

-- Class MF1, rated 'AA', placed on Rating Watch Negative;

-- Class MF2 downgraded to 'A-' from 'A' and placed on Rating

Watch Negative;

-- Class BF downgraded to 'CCC' from 'BBB'.

Series 2001-A Group 2

-- Class MV2, rated 'A', placed on Rating Watch Negative;

-- Class BV, rated 'BBB', placed on Rating Watch Negative.

These rating actions are the result of adverse collateral performance and the deterioration of asset quality outside of Fitch's original expectations.

In particular IndyMac's 2000 vintage and 2001-A deal contained approximately 2-13% of manufactured housing (MH) collateral at closing, please refer to table below. Currently there is approximately 4-23% of MH remaining in these deals, the majority of which is in the delinquency pipeline. To date, MH loans have exhibited very high historical loss severities, causing Fitch to have concerns over the available enhancement in these deals.

%MH                        2000-C Grp I   2000-C Grp II   2000-B Grp I

-- At close                       12.08            9.64          12.73
-- At December 2002               22.37           18.45          23.19

                          2000-B Grp II    2000-A Grp I  2000-A Grp II

-- At close                        6.50            9.35           2.58
-- At December 2002               13.03           15.21           4.34

                           2001-A Grp I   2001-A Grp II

-- At close                        9.55           10.92
-- At December 2002               16.84           15.88

The 2000-C and 2001-A deals were structured with mortgage insurance (MI) policies provided by both the lender and the borrower on approx. 80% of the mortgage pools. These deals have experienced low levels of losses because of the slow resolution of insurance claims, and the slow liquidation process on the MH collateral. Fitch has been informed by IndyMac that a group has been segregated to specifically handle the MI relationships and the claim submittal and timing process. Fitch anticipates that losses could be exasperated over the next year as a result of the additional MI focus, the ongoing buildup of the Foreclosure and REO delinquency buckets, and the liquidations of the existing defaulted collateral.

The structures in the 2001-A, 2000-C, 2000-B, and 2000-A transactions do not allow for excess spread to be shared by the groups. Furthermore, a 36-month Interest Only (IO) strip is present in Group I of the 2001-A and 2000-C transactions. This siphons off excess spread that would otherwise be available to cover losses and to build OC in the deals. Once these IO classes mature more excess spread will be available for credit support.

All of the above referenced deals are structured such that there is the ability in future periods for the bonds that were written down due to losses to be written back up.

Fitch will continue to closely monitor these deals.