LB, Series 1992-M1, Classes C1 & C2 Affirmed By Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 12, 2001

LB Multifamily Mortgage Trust's, multiclass pass-through certificates, series 1992-M1, are affirmed by Fitch as follows: $1.3 million class C1 and interest-only class AX at `AAA', and $9.8 million class C2 at `BBB'. The $9.2 million class C3 certificates are not rated by Fitch. The affirmations follow Fitch's annual review of the transaction, which closed in March 1992.

The certificates are collateralized by fixed and adjustable- rate mortgage loans, secured by multifamily properties. As of the March 2001 distribution date, the pool's collateral balance has been reduced by 93%, from $276.7 million at closing to $20.4 million. Of the original 727 loans in the pool, 91 remain outstanding. Since Fitch's 2000 annual review, three loans have paid off and the pool's balance has been reduced by 2%.

Six loans (3.3% by balance) are being specially serviced by Lennar Partners, Inc., including a 90+ days delinquent loan (0.1%) and an REO loan (1.9%). The 90+ days delinquent loan has been brought current since the March 2001 distribution date. The REO loan is secured by a property in Cliffside Park, New Jersey. The loan has been REO since August 1999. The property is currently 100% occupied. A loss is expected on this loan. Realized losses in the pool total $12.8 million, or 4.6% of the original pool balance.

Concerns include shifts in loan and geographic concentrations, and lack of information due to the reporting requirements. The largest loan in the pool currently represents 9% of the outstanding principal balance, while the top ten loans represent 55% (by balance), compared to 24% at closing. Almost 90% of the loans (by balance) are concentrated in two states: Ohio (49%) and California (39%). According to the Pooling and Servicing Agreement, only the loans with an outstanding balance exceeding $1 million are required to submit financials.

ORIX Real Estate Capital Markets, LLC, the sub-servicer, collected year-end 1999 property financial statements for six loans (34% by balance). The 1999 weighted average debt service coverage ratio for these loans was 1.33 times (x), compared to 1.12x at closing (for the same loans).

Various hypothetical stress scenarios were applied to account for shifts in loan/geographic concentrations, loans with a DSCR below 1.00x, other potentially problematic loans, as well as a percentage of loans with no financials. Even under these stress scenarios, subordination levels were sufficient to affirm the ratings. Fitch will continue to monitor this transaction, as surveillance is ongoing.