Fitch Takes Rtg Actions On Amresco Residential Securities Corp.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 25, 2002

Fitch Ratings takes ratings actions on the following Amresco Residential Securities Corp. mortgage pass-through certificates issues:

Series 1997-3 Group 1

--Class B2F downgraded to 'CCC' from 'B' and removed from
Rating Watch;

--Class B1F downgraded to 'BB' from 'BBB' and removed from
Rating Watch;

--Classes A1-A9 affirmed at 'AAA';

--Class M1-F affirmed at 'AA';

--Class M2-F affirmed at 'A'.

Series 1997-3 Group 2

--Class A10 affirmed at 'AAA';

--Class M1-A affirmed at 'AA':

--Class M2-A affirmed at 'A';

--Class B1A affirmed at 'BBB-'.

Series 1998-1 Group 1

--Class B1F downgraded to 'D' from 'BBB';

--Classes A1-A6 affirmed at 'AAA';

--Class M1-F affirmed at 'AA';

--Class M2-F affirmed at 'A'.

Series 1998-1 Group 2

--Class A7 affirmed at 'AAA';

--Class M1-A affirmed at 'AA';

--Class M2-A affirmed at 'A';

--Class B1A affirmed at 'BBB-'.

The 1997-3 Groups 1 & 2 certificates are collateralized by a pool of fixed- and adjustable-rate home equity mortgage loans, respectively. The rating action on the classes B1-F and B2-F is due to the erosion of overcollateralization as well as the high levels of delinquencies. The following were reported as of the June 25, 2002 distribution:

--OC amounts of $359,774.00 and $3,420,000.00 (0.46% and 5.18%
of the current pool balance) for 1997-3 Groups 1 and 2,
respectively;

--monthly losses of $302,486.85 for Group 1 bringing the
cumulative losses to $11,166,573.00 (4.20% of the original pool
balance) and $123,520.00 for Group 2 bringing the cumulative losses to
$26,221,065.00 (3.83% of the original pool balance); and,

--30, 60 and 90+ day delinquencies of 2.08%, 1.43% and 11.59% for
Group 1 and 2.30%, 1.12% and 23.77% for Group 2. The delinquency
numbers are inclusive of Foreclosure, Bankruptcy and REO properties.

The 1998-1 Groups 1 & 2 certificates are also collateralized by a pool of fixed and adjustable rate home equity mortgage loans, respectively. The rating action on the class B1-F is due to erosion of overcollateralization caused by high levels of losses as well as the high levels of delinquencies. The following were reported as of the June 25, 2002 distribution:

--OC amount for 1998-1 Group 2 of $3,388,032 (4.80% of the current
pool balance);

--monthly losses of $946,240.23 for Group 1 bringing the
cumulative losses to $25,647,464.00 (6.41% of the original pool
balance) and $359,969.22 for Group 2 bringing the cumulative losses to
$35,446,538.33 (5.91% of the original pool balance); and,

--30 day, 60 day and 90+ day delinquencies of 1.57%, 0.73% and
10.92% for Group 1 and 2.93%, 0.82% and 27.78% for Group 2. The
delinquency numbers are inclusive of Foreclosure, Bankruptcy and REO
properties.

Additionally, the remaining classes are affirmed based on Fitch's opinion that credit enhancement provided by cross-collateralization, overcollateralization and excess interest is sufficient to maintain the current ratings.