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FLEET MORTGAGE GROUP, INC. 'A' SENIOR NOTES AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 21 /PRNewswire/ -- Fleet Mortgage Group, Inc.'s `A' senior debt and `F-1' commercial paper are affirmed by Fitch following today's announcement that the company will take a $100 million charge against second-quarter earnings. The credit trend remains stable.
 The charge results from a higher consensus prediction for loan prepayments and a refinement to a more conservative approach to evaluating purchased mortgage servicing rights on a disaggregated basis compared to a portfolio basis. Of the $100 million charge, $40 million was a direct result of Fleet Mortgage adopting the disaggregated method for the accounting treatment of servicing.
 In addition, the company established a $60 million provision for future refinements to the disaggregated method and further accelerated prepayments. Cashflow, which is unaffected by the charges, remains strong at $106.8 million for the six months ended June 30. Fleet maintains one of the industry's largest servicing portfolios at $64 billion as of June 30 and originations remain strong with $9.9 billion of production for the six months ended June 30.
 After the accounting charge and provision, Fleet Mortgage posted a second-quarter net loss of $35.4 million and a net loss of $8.6 million for the six months ended June 30. Six-month net earnings before these charges were $52.2 million compared to $51.9 million in 1992. Following these charges, the company's servicing asset, as reflected on the balance sheet, is further reduced to roughly 83 basis points at June 30 from its already conservative value of 92 basis points at Dec. 31, 1992. Leverage remains moderate.
 -0- 7/21/93
 /CONTACT: Teri L. Seelig, 212-908-0638, or Felix Huang, 212-908-0621, both of Fitch/
 (FLG)


CO: Fleet Mortgage Group, Inc. ST: IN: FIN SU: RTG

CK -- NY061 -- 3950 07/21/93 12:44 EDT
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Publication:PR Newswire
Date:Jul 21, 1993
Words:297
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