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Three Subprime Lenders Achieve Servicer Ratings

Moody's Investors Service has assigned one and affirmed two SQ2 ratings to servicers of subprime loans.

CitiFinancial Mortgage, Ameriquest Mortgage and Wilshire Credit Corporation have all been granted an SQ2 rating as primary servicers of residential subprime mortgage loans by the New York-based credit assessment services provider.

Moody's Investors Service has assigned CitiFinancial Mortgage an SQ2 rating, as a primary servicer of residential subprime mortgage loans and an SQ2 as a special servicer of residential mortgage loans. Moody's ratings are based on above-average collection and loss mitigation results, above-average foreclosure and REO timeline management, and strong servicer stability.

CFMC's servicing portfolio totaled $24.85 billion as of Dec. 31, 2004. The company primarily services fixed-and variable-rate first- and second-lien subprime residential mortgage loans.

To Moody's, CFMC's collection and loss mitigation results are above average. Of the subprime loans that began a 12-month static pool analysis as 30 and 60 days delinquent, 55% and 42% improved in terms of delinquency, respectively. Of the subprime loans that began the static pool analysis as 90 days delinquent or more - excluding REO - 40% were either cured or became cash flowing.

Citigroup, CFMC's corporate parent, is rated Aa1 for senior unsecured debt.

Moody's affirmed Ameriquest's SQ2 rating as a primary servicer of residential subprime mortgage loans. Moody's rating is based on strong collection abilities, strong foreclosure and REO timeline management, average loss mitigation results and average servicer stability.

Ameriquest's servicing portfolio totaled $81.5 billion as of Dec. 31, 2004. The company primarily services first-lien mortgage loans that are viewed as below prime.

Moody's views Ameriquest's collection abilities as strong. Of the loans that began the 12-month static pool as current, 12% rolled to a worse stage of delinquency. Loss mitigation results are rated as average. Of the first-lien loans that began the 12-month static pool with 90 days delinquent or more - excluding REO - 19% and 11% were either cured or became cash flowing by the end of the static pool period, respectively.

Finally, Moody's affirmed Wilshire's SQ2 ratings as a primary servicer of both residential subprime first-lien mortgage loans and second-lien mortgage loans. The credit assessment firm also affirmed Wilshire's SQ2 rating as a special servicer of residential mortgage loans.

The rating is based on the Portland, Ore.-based loan servicer's above-average collection abilities, strong results in loss mitigation, strong foreclosure and REO timeline management, and above-average servicing stability.

Analyzing a 12-month static pool of loans, 46% of subprime loans that were boarded by Wilshire as less than 90 days delinquent and started the static pool period as 30 days or 60 days delinquent had improved in delinquency status. A similar analysis for second-lien loans revealed that 69% of 30-day and 60-day delinquent loans had improved in delinquency status.

Of the subprime loans that were boarded by Wilshire as less than 90 days delinquent and began the static pool period as 90 days delinquent or more or in bankruptcy, 45% were cured or became cash flowing. Of the second-lien loans that were boarded as less than 90 days delinquent and began the static pool period as 90 days delinquent or more or in bankruptcy, 55% were cured or became cash flowing.

Wilshire's servicing portfolio totaled $10.1 billion as of Dec. 31, 2004. The company primarily services first-lien subprime and second-lien mortgage loans.

Merrill Lynch & Co., Wilshire's indirect corporate parent, is rated Aa3 for unsecured debt.

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