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Seventeen classes of Chase Mortgage Finance Corp. mortgage pass-through certificates have been downgraded by Fitch Ratings. Fitch also affirmed the ratings on 16 classes from five Chase transactions. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and expected losses. The collateral consists of fixed- and adjustable-rate, first-lien prime mortgage loans.

Nineteen classes of CitiMortgage Alternative Loan Trust mortgage pass-through certificates have been downgraded by Fitch Ratings. Fitch also placed four classes of pass-throughs on Rating Watch Negative and affirmed the ratings on seven classes from five CMALT transactions. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and expected losses. The collateral consists of fixed-rate, first-lien alternative-A mortgage loans.

Thirty-eight classes of Citigroup Mortgage Loan Trust mortgage pass-through certificates have been downgraded by Fitch Ratings. Fitch also placed 10 classes on Rating Watch Negative, upgraded five classes, and affirmed the ratings on 41 classes from 16 CMLT transactions. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and expected losses. The collateral consists of fixed- and adjustable-rate, first-lien prime and alternative-A mortgage loans.

The long- and short-term issuer default ratings of IndyMac Bancorp Inc. and IndyMac Bank FSB have been downgraded by Fitch Ratings. The long-term IDRs of the Pasadena, Calif.-based companies were downgraded from BBB-minus to BB, and the short-term IDRs were downgraded from F3 to B. The rating outlook is negative. The downgrades reflect "the expectation that [IndyMac Bancorp's] near-term return to profitability will be challenging as changes in mortgage industry dynamics, once viewed as temporary, become more permanent," the rating agency said. Fitch can be found online at http://www.fitchratings.com, and IndyMac can be found at http://www.indymacbank.com.

Fannie Mae issued $629.5 billion in mortgage-backed securities in 2007, up 30% from the level recorded in the previous year, as the government-sponsored enterprise benefited from the meltdown in the private-label MBS market. In December, Fannie issued $64.0 billion in guaranteed MBS -- its best month since April 2003, when MBS issuance totaled $78.7 billion and lenders could barely keep up with the refinancing boom. November 2007 issuance totaled $62.6 billion. The monthly report shows that Fannie's mortgage investment portfolio ended the year at $723.9 billion, up slightly from $721.4 billion at the beginning of 2007. Fannie's regulator has a cap on the growth of the GSE's portfolio growth, which might be removed this year. Fannie can be found online at http://www.fanniemae.com.

BankUnited Financial Corp., Coral Gables, Fla., has reported a mortgage-related net loss of $25.5 million ($0.73 per share) for the fourth quarter and announced the closure of four of its nine wholesale residential mortgage sales offices. Alfred R. Camner, the company's chairman and chief executive officer, said BankUnited has made "a strategic decision to significantly reduce our wholesale residential mortgage business." The four wholesale offices closed by the company were located in Arizona, California, Colorado, and Oregon. The company also consolidated nine operations centers into three. "In total, we have reduced our wholesale residential staff by more than 45% and significantly cut our annualized run rate of expenses," Mr. Camner said. "We have also changed our product mix, producing a higher proportion of saleable product, mainly conforming agency and other conduits." BankUnited's fourth-quarter loss was partly attributable to a $65 million provision that increased its allowance for loan losses to $118 million. BankUnited had recorded earnings of $27.4 million ($0.71 per share) a year earlier. The company can be found online at http://www.bankunited.com.

Senate Banking Committee Chairman Christopher J. Dodd, D-Conn., has pledged to act on a GSE reform bill this year in an effort to get the White House to accept a temporary increase in the Fannie Mae and Freddie Mac loan limit that is going to be inserted in the economic stimulus package. Sen. Dodd met with Treasury Secretary Henry Paulson Friday morning to discuss strengthening the regulation of the two government-sponsored enterprises. "I wanted the secretary to know I am going to get a GSE bill done," Sen. Dodd told reporters. The Treasury secretary has let it be known that he is unhappy with the one-year increase in the loan limit that House Democratic and Republican leaders insisted on. He has always insisted that an increase should be tied to passage of a comprehensive GSE reform bill. Meanwhile, Republicans claim they agreed to increase the GSE loan limit from $417,000 to $625,000. But in marking up the stimulus bill, Democrats plan to raise the GSE loan limit to 125% of median area home prices in 12 high-cost metropolitan statistical areas, with a $729,750 cap.

House leaders have struck a deal with the White House to increase Fannie Mae and Freddie Mac loan limits from $417,000 to a maximum of $730,000 during negotiations on a $150 billion economic stimulus package. The stimulus package, which Congress is expected to pass in a few weeks, also increases the Federal Housing Administration loan limit permanently. This increase reflects an agreement between the House and Senate banking committee chairmen to increase the FHA and GSE loan limits to 125% of median area home prices, with a $730,000 cap. The increase in the loan limit for the two government-sponsored enterprises would expire after 12 months. House Speaker Nancy Pelosi, D-Calif., negotiated the deal with Treasury Secretary Henry Paulson. But the GSE regulator said raising the loan limit is a "mistake" without passage of a comprehensive bill to strengthen regulation and oversight of Fannie and Freddie. "To restore confidence in the markets, we must ensure the GSEs' regulator has all the necessary safety-and-soundness tools," said James Lockhart, director of the Office of Federal Housing Enterprise Oversight.

Four classes from two issues of American Home Mortgage Assets Trust residential mortgage-backed certificates have been downgraded by Fitch Ratings. The downgrades were as follows: series 2005-1 group 3, class 3-M-4, from BBB-minus to BB (and remains on Rating Watch Negative); and series 2005-2 group 1, class 1-B-3, from BBB-plus to BB (and placed on Rating Watch Negative), class 1-B-4, from BB to CC/DR3, and class 1-B-5, from B to C/DR6. Fitch also placed class 3-M-3 of series 2005-1 group 3 on Rating Watch Negative and affirmed the ratings on 21 classes in four American Home deals. The downgrades were attributed to deterioration in the relationship between credit enhancement and expected losses.

Five classes of mortgage pass-through certificates from J.P. Morgan Alternative Loan Trust series 2007-A1 have been downgraded by Fitch Ratings. The downgrades were as follows: class C-B-1, from AA to A-plus; class C-B-2, from A to BBB; class C-B-3, from BBB to B; class C-B-4, from BB to C/DR4; and class C-B-5, from B to C/DR5. Fitch also affirmed the rating on one class in the deal. The downgrades were attributed to deterioration in the relationship between credit enhancement and expected losses.