Fitch Takes Various Rating Actions on 23 SAIL RMBS Transactions.

NEW YORK -- Fitch Ratings has taken rating actions on the following Structured Asset Investment Loan (SAIL) mortgage pass-through certificates:

Series 2003-BC1

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'BBB+';

Series 2003-BC2

--Class A affirmed at 'AAA';

--Class M1 downgraded from 'AA' to 'A';

--Class M2 downgraded from 'A' to 'BBB+';

--Class M3 affirmed at 'BBB+';

--Class B affirmed at 'BBB-';

Series 2003-BC3

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'A-';

--Class M5 affirmed at 'BBB';

--Class B affirmed at 'BBB-';

Series 2003-BC4

--Class M1 affirmed at 'AA';

--Class M2 downgraded from 'A' to 'A-';

--Class M3 downgraded from 'A-' to 'BBB+';

--Class M4 downgraded from 'BBB+' to 'BBB';

--Class B affirmed at 'BBB-';

Series 2003-BC6

--Class M1 affirmed at 'AA';

--Class M2 downgraded from 'A' to 'A-';

--Class M3 downgraded from 'A-' to 'BBB';

--Class M4 downgraded from 'BBB+' to 'BBB-';

--Class B affirmed at 'BBB-';

Series 2003-BC7

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 downgraded from 'A' to 'A-';

--Class M3 downgraded from 'A-' to 'BBB';

--Class M4 downgraded from 'BBB+' to 'BB+';

--Class M5 downgraded from 'BBB' to 'BB+';

--Class B downgraded from 'BBB-' to 'BB+';

Series 2003-BC8

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 downgraded from 'A-' to 'BBB+';

--Class M4 downgraded from 'BBB' to 'BB+';

--Class M5 downgraded from 'BB' to 'B+';

--Class B downgraded from 'BB-' to 'B';

Series 2003-BC9

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 downgraded from 'A' to 'A-';

--Class M3 downgraded from 'A-' to 'BBB';

--Class M4 downgraded from 'BBB+' to 'BB+';

--Class M5 downgraded from 'BBB' to 'BB';

--Class B downgraded from 'BBB-' to 'BB-';

Series 2003-BC10

--Class 1-A2 affirmed at 'AAA';

--Class A4 affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 downgraded from 'A' to 'BBB+';

--Class M3 downgraded from 'A-' to 'BBB-';

--Class M4 downgraded from 'BBB+' to 'BBB-';

--Class M5 downgraded from 'BBB' to 'BBB-';

--Class B downgraded from 'BBB-' to 'BB+';

Series 2003-BC11

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 downgraded from 'A' to 'A-';

--Class M3 downgraded from 'A-' to 'BBB';

--Class M4 downgraded from 'BBB+' to 'BB+';

--Class M5 downgraded from 'BBB' to 'BB';

--Class B downgraded from 'BBB-' to 'BB-';

Series 2003-BC12

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 downgraded from 'A' to 'BBB+';

--Class M3 downgraded from 'A-' to 'BBB';

--Class M4 downgraded from 'BBB' to 'BB+';

--Class M5 downgraded from 'BB+' to 'BB-';

--Class M6 downgraded from 'BB+' to 'BB-';

--Class B downgraded from 'B' to 'C', and is assigned a Distressed Recovery rating of 'DR5';

Series 2003-BC13

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'A-';

--Class M4 downgraded from 'BBB+' to 'BBB';

--Class M5 downgraded from 'BBB' to 'BBB-';

--Class M6 affirmed at 'BBB-';

--Class B affirmed at 'BB';

Series 2004-1

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'A-';

--Class M4 affirmed at 'BBB+';

--Class M5 affirmed at 'BBB';

--Class M6 affirmed at 'BBB-';

--Class B affirmed at 'BB+';

Series 2004-2

--Class A4 affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'A-';

--Class M4 affirmed at 'BBB+';

--Class M5 affirmed at 'BBB';

--Class M6 affirmed at 'BBB-';

--Class B affirmed at 'BB';

Series 2004-3

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'A-';

--Class M4 downgraded from 'BBB+' to 'BBB';

--Class M5 downgraded from 'BBB' to 'BBB-';

--Class M6 affirmed at 'BBB-';

--Class B downgraded from 'BB+' to 'BB';

Series 2004-4

--Class A affirmed at 'AAA';

--Class A4 affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'AA-';

--Class M3 affirmed at 'AA-';

--Class M4 affirmed at 'A+';

--Class M5 downgraded from 'A' to 'A-';

--Class M6 downgraded from 'BBB+' to 'BBB-';

--Class M7 downgraded from 'BBB' to 'BB';

--Class M8 downgraded from 'BBB-' to 'BB-';

--Class B downgraded from 'BB' to 'B+';

Series 2004-5

--Class M1 affirmed at 'AAA';

--Class M2 affirmed at 'AA+';

--Class M3 affirmed at 'AA';

--Class M4 affirmed at 'AA-';

--Class M5 affirmed at 'A';

--Class M6 affirmed at 'A-';

--Class M7 affirmed at 'BBB+';

--Class M8 affirmed at 'BBB';

Series 2004-6

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 downgraded from 'A-' to 'BBB+';

--Class M4 downgraded from 'BBB+' to 'BBB';

--Class M5 downgraded from 'BBB' to 'BB';

--Class M6 downgraded from 'BBB-' to 'BB';

Series 2004-7

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA+';

--Class M2 affirmed at 'AA';

--Class M3 affirmed at 'AA-';

--Class M4 affirmed at 'A';

--Class M5 affirmed at 'A-';

--Class M6 downgraded from 'BBB+' to 'BBB';

--Class M7 downgraded from 'BBB' to 'BB';

Series 2004-8

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA+';

--Class M2 affirmed at 'AA';

--Class M3 affirmed at 'AA';

--Class M4 affirmed at 'AA';

--Class M5 affirmed at 'A';

--Class M6 downgraded from 'A-' to 'BBB+';

--Class M7 downgraded from 'BBB+' to 'BBB-';

--Class M8 downgraded from 'BBB' to 'BB';

--Class M9 downgraded from 'BBB-' to 'BB-';

Series 2004-9

--Class A affirmed at 'AAA';

--Class M1 affirmed at 'AA+';

--Class M2 affirmed at 'AA';

--Class M3 affirmed at 'A+';

--Class M4 affirmed at 'A';

--Class M5 affirmed at 'A-';

--Class M6 affirmed at 'BBB+';

--Class M7 affirmed at 'BBB';

--Class B1 affirmed at 'BBB-';

--Class B2 affirmed at 'BBB-';

Series 2004-BNC1

--Classes A2, A4, and A-SIO affirmed at 'AAA';

--Class A5 affirmed at 'AA+';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'AA-';

--Class M3 affirmed at 'A+';

--Class M4 affirmed at 'A';

--Class M5 affirmed at 'BBB+';

--Class M6 affirmed at 'BBB';

--Class M7 affirmed at 'BBB-';

--Class B1 affirmed at 'BB';

Series 2004-BNC2

--Class A affirmed at 'AAA';

The collateral in the aforementioned transactions consist primarily of conventional, first and second lien, adjustable and fixed rate, fully amortizing and balloon loans secured by residential properties. The collateral was originated by multiple lenders including BNC Mortgage, Inc., Option One Mortgage Corporation, Wells Fargo Home Mortgage, Inc., Aames Capital Corporation, Finance America, LLC, Fieldstone Mortgage Company, and others. The master servicer for all transactions is Aurora Loan Services, Inc., which is rated 'RMS1'- by Fitch.

The affirmations reflect a stable relationship of credit enhancement (CE) to future expected losses, and affect approximately $4.26 billion in outstanding certificates. The downgrades reflect deterioration in the relationship between CE to future expected losses, and affect approximately $890.17 million in outstanding certificates.

All of the SAIL transactions listed above benefit from mortgage insurance, typically covering a percentage of the loans with loan-to-values above 80% down to an effective loan-to-value of 60%. The transactions have generally experienced faster prepayments than the vintage industry averages due to higher concentrations of Adjustable Rate Mortgages and loans located in California. The faster prepayments and rising interest rates have reduced the excess spread available to cover losses, while causing adverse selection in the remaining pools.

High prepayment rates also result in a rapid and significant amount of principal distribution to the subordinate and mezzanine classes after the stepdown date if the performance trigger tests are passing, typically lowering the credit enhancement of each class to two-times the initial credit enhancement percentage. However, most of the transactions have overcollateralization (OC) target amounts at their respective floors, preventing any release of OC and often providing the most subordinate class with more than 2 times (x) its initial credit enhancement. As the OC grows as a percentage of the remaining pool balance, the separation in credit enhancement (and credit risk) between subordinate and mezzanine classes is compressed. This has resulted in some transactions incurring downgrades in the mezzanine classes while the subordinate class ratings were affirmed.

For the 2003 vintage, the pool factors (current collateral balance as a percentage of initial collateral balance) range from 7% to 15%, and are seasoned in a range of 39 months to 48 months. The amount of loans in the 60+ buckets (includes bankruptcy, foreclosure, and real estate owned) range from 14.97% to 28.92%, and losses to date range from approximately 0.59% to 1.26%. Of the loans that are seriously delinquent, approximately 31% benefits from mortgage insurance. The WAVG LTV is approximately 83% and the WAVG FICO is approximately 593. Approximately 1% are second lien loans.

For the 2004 vintage, the pool factors (current collateral balance as a percentage of initial collateral balance) range from 14% to 25%, and are seasoned in a range of 28 months to 37 months. The amount of loans in the 60+ buckets (includes bankruptcy, foreclosure, and real estate owned) range from 13.41% to 20.13%, and losses to date range from approximately 0.36% to 0.84%. Of the loans that are seriously delinquent, approximately 27% benefits from mortgage insurance. The WAVG LTV is approximately 83% and the original WAVG FICO is approximately 602. Approximately 11% of all loans are interest only (IO), and 2% are second lien loans.

Fitch will continue to closely monitor the relationships of CE to losses for all transactions. For further information regarding collateral attributes, delinquencies, and other relevant statistics please visit the Fitch Ratings website at www.fitchratings.com.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.