Fitch Upgr Fairbanks' Primary Servicer For Subprime To `RPS1'.

Business Editors & Analysts

NEW YORK--(BUSINESS WIRE)--June 14, 2001

Fitch upgrades Fairbanks Capital Corp's (Fairbanks) primary servicer rating for subprime product to `RPS1' and affirms its `RSS1' residential special servicer rating. The primary servicer rating for subprime product reflects the company's ability to service, collect, and liquidate subprime residential mortgage loans as well as its comprehensive early collections and loss mitigation procedures. The special servicer rating reflects the company's ability to liquidate nonperforming residential mortgage loans and real estate owned (REO) assets utilizing its extensive default management experience and strong default servicing technology, as well as its access to stable financial capital.

Fitch also upgrades Fairbanks primary servicer rating for Alt-A and home equity (closed-end seconds and HELOCs) products to `RPS1-' based on the company's ability to service, collect, and liquidate these products. The ratings reflect Fairbanks experienced senior management and its comprehensive loan administration procedures and controls, along with the additional strengths noted above.

As of April 30, 2001, Fairbanks serviced approximately 239,000 loans for over $16.1 billion in outstanding principal balance. Fairbanks has proven they can successfully integrate large portfolios of loans and still manage operations and performance with the addition of four recent acquisitions. In March 2000, Fairbanks entered into a joint venture with WMC Mortgage Corp. to assume control over its Woodland Hills, CA servicing operation comprised of approximately 25,000 subprime loans for $2.5 billion. In July 2000, Fairbanks acquired a residential mortgage servicing portfolio of approximately 128,000 loans for $7 billion from ContiFinancial Corp. along with its ContiMortgage servicing operation based in Hatboro, PA. In April 2001, Fairbanks acquired the CitiFinancial servicing operation in Tampa, FL and was engaged to subservice whole loans on behalf of CitiFinancial - involving a total of approximately 82,000 loans for $5.4 billion. Two separate transfers were involved with CitiFinancial. The first transfer was the IMC home equity portfolio of approximately 60,000 loans for $3.6 billion and the second transfer was the CitiFinancial whole loan portfolio of approximately 22,000 loans for $1.8 billion. In June 2001, Fairbanks assumed the servicing of approximately 23,000 loans for $765 million of high loan-to- value second liens from US Bank that were acquired and securitized by a major client.

By retaining three servicing operations in Salt Lake City, Hatboro and Tampa, Fairbanks has been able to retain experienced staff and to avoid and/or mitigate some of the typical servicing transfer issues. In tandem with its rapidly expanding operations, Fairbanks has demonstrated a strong commitment to develop its servicing platform including hiring experienced managers; automating loan administration functions; strengthening procedures and controls; as well as continuing to enhance its technology. Fitch has reviewed the company's servicing operations and believes that Fairbanks has the appropriate staff, technology, procedures, and controls in place to manage its rapid growth while maintaining performance. Fitch will continue to closely monitor the company's effective management of its future growth and multiple servicing locations.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. For more information on the review and rating process for servicers, see Fitch's Servicer Rating Criteria research report titled `Rating Residential Loan Servicers' dated Aug. 3, 1999, available on Fitch's web site at `www.fitchratings.com'.