Fitch Upgrades Chase's Primary & Special Servicer Ratings.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 19, 2003

Fitch Ratings affirms the residential primary servicer rating for Chase Manhattan Mortgage Corporation (CMMC) at 'RPS1' for prime product, upgrades the ratings for subprime, Alt-A, and HLTV to 'RPS1' from 'RPS1-' and upgrades the residential special servicer rating to 'RSS1' from 'RSS1-'. In addition, Fitch affirms CMMC's 'RMS1-' residential master servicer rating.

The primary servicer ratings reflect CMMC's accomplished management team, strong servicing platform supporting the company's diverse product lines, impressive technology infrastructure and comprehensive loan administration procedures and controls. The special servicer rating reflects CMMC's ability to liquidate nonperforming residential mortgage loans and real estate-owned (REO) assets utilizing its extensive default management expertise and proficient default servicing technology.

The master servicer rating is based on CMMC's strong master servicing experience, excellent portfolio management, extensive procedures and controls, as well as its experienced and tenured management and staff. The rating also reflects the company's continued proficiency in managing the servicing functions including loan accounting, investor reporting, and the default oversight activities of its primary and special servicers.

All of the ratings incorporate the strong financial condition of its parent, J.P. Morgan Chase & Co., which is rated 'A+' by Fitch.

As of June 30, 2003, CMMC had a portfolio of over 3.9 million loans totaling $446.7 billion. At midyear, CMMC's portfolio included approximately 2.5 million prime loans totaling $338.3 billion, 205,690 subprime/Alt-A loans totaling $21.4 billion, and 306,028 HELOC/HLTV loans totaling $12.3 billion. In addition, they serviced over 183,000 loans for third parties, for a total of approximately $29.2 billion, which includes special servicing.

CMMC master serviced 57,731 loans for over $12.25 billion as of June 30, 2003, an increase of 11.8% in loan volume and 9.4% in dollar volume since Fitch's last review. CMMC currently manages the oversight for approximately 133 primary servicers and 171 residential mortgage-backed securities (RMBS) transactions.

Over the last year there have been numerous technology upgrades, many Six Sigma initiatives, enhanced online policies and procedures, and strengthened controls. These improvements, along with those planned for 2004, demonstrate that CMMC is well positioned to pursue its projected growth targets. Fitch will continue to monitor CMMC's performance and evaluate its progress in effectively managing its operations and growth initiatives, as well as the continued enhancement of its servicing technology.

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, and available on the Fitch Ratings web site at 'www.fitchratings.com'.