Servicing

Class M of American Business Financial Services Mortgage Loan Trust series 2003-2 has been placed on Rating Watch Negative by Fitch Ratings.The rating agency also affirmed the rating on one other class in the deal. The Rating Watch placement was attributed to the fact that the payment of principal and interest is guaranteed by Radian Asset Assurance Inc., which has been assigned a negative outlook by the rating agency.

Class M of Bear Stearns Asset Backed Securities Inc. series 2003-ABF1 has been placed on Rating Watch Negative by Fitch Ratings.The rating agency also affirmed the rating on one other class in the deal. Fitch attributed the negative rating action to the fact that the payment of principal and interest is guaranteed by Radian Asset Assurance Inc., which has been assigned a negative outlook by the rating agency.

Three classes of notes issued by NYLIM Stratford CDO 2001-1 Ltd., a collateralized debt obligation partly composed of commercial and residential mortgage-backed securities, have been downgraded by Fitch Ratings.In addition, the ratings on one other class was affirmed. Fitch attributed the downgrades to continued deterioration in the credit quality of the collateral.

Three classes of Ace Securities Corp.'s asset backed pass-through certificates, series 2004-HE1, have been downgraded and removed from Rating Watch Negative by Fitch Ratings.The downgrades were as follows: class M-4, from BBB-plus to BBB; class M-5, from BBB to BB; and class M-6, from BBB-minus to BB-minus. In addition, Fitch affirmed the ratings on four classes in the deal. The downgrades were attributed to higher-than-expected monthly losses that have caused "significant deterioration" in the overcollateralization amount. Fitch said it expects the OC to be depleted within the next couple of months and that class B will start taking writedowns, putting classes M-4, M-5, and M-6 at greater risk. The mortgage pool consists of conventional first- and second lien residential mortgage loans on properties located chiefly in California, New York, and Florida. Fitch can be found on the Web at http://www.fitchratings.com.

The use of automated valuation models to assess the value of a home may no longer result in property value penalties, according to a new criteria report by Fitch Ratings. Under the new criteria, AVM review depends on individual lenders' processes and controls for using the models rather than the overall strength of the values in the regions the properties being valued are in, according to Fitch senior director Suzanne Mistretta. Going forward, Fitch "will discount property values by 5% or more if either a lender's usage processes and controls do not adequately mitigate overvaluation risk, or if a lender's processes are not disclosed to Fitch," she said. Previously, Fitch said it "would discount property values derived from an AVM assessment from 10%-15% in regional markets deemed 'weak' or 'soft.'" Fitch can be found on the Web at http://www.fitchratings.com.

LOGS Network, Northbrook, Ill., has extended full membership to Aztec Foreclosure Corporation, Phoenix, a trustee doing business in California and Nevada.Aztec has also entered into a practice management agreement under which the company will receive services such as human resources support, data and security support, risk management and marketing services from LOGS. LOGS President and Chief Operating Officer Gerald Alt said the addition of Aztec expands network coverage to 33 states. LOGS Network members represent the mortgage servicing and consumer credit industry in areas such as foreclosure, bankruptcy, eviction, title, and REO management.

Moody's Investors Service has affirmed its highest servicer quality rating for Chase Home Finance as a primary servicer of prime and subprime residential mortgage loans.The SQ1 rating reflects Chase's strong collection abilities, above average loss mitigation results, above average foreclosure and REO timeline management, and strong servicing stability, Moody's said. As of April 30, 2006, Chase serviced $474 billion of prime credit quality home loans and $76 billion of subprime mortgages. Chase has servicing sites in Columbus, Ohio; Cleveland, Ohio; Monroe, La.; and San Diego, Calif. Chase also has a customer service center in the Philippines and a Spanish-language customer service site in Costa Rica.

Fitch Ratings has downgraded the long-term credit rating and distressed recovery rating of one class in COMM's commercial mortgage pass-through certificates, series 2000-C1 while upgrading or affirming the ratings of other classes in the deal.The rating of class N slipped to C/DR6 from CC/DR3 due to "increased loss expectations on the specially serviced assets," Fitch said, adding that, "projected losses on the specially serviced assets are expected to fully deplete [the unrated] class O and significantly impair class N." Fitch raised the ratings of class B through H and affirmed the ratings of class A-1, class A-2, interest-only class X, class J, class K, class L and class M. "The rating upgrades reflect increased credit enhancement due to scheduled amortization and additional defeasance," Fitch said. Fitch Ratings can be found on the Web at http://www.fitchratings.com.

Speaking at a Federal Reserve Bank of Chicago annual meeting, Fed Chairman Ben Bernanke said it "seems pretty clear" that housing markets are cooling.But, as reported by The Wall Street Journal, Mr. Bernanke responded to a question saying that the housing slowdown is "orderly and moderate" at the time being. In his prepared speech, Mr. Bernanke also addressed new mortgage products, saying that innovation in housing finance has led to "more sophisticated and flexible instruments, more liquid markets, and better risk-sharing." While the net benefits have been positive, Mr. Bernanke said "rapid financial innovation carries some risks," and he urged regulators to be ready to mitigate those risks.

Moody's Investors Service has downgraded the ratings of two classes of Commercial Mortgage Asset Trust, Series 1999-C2 and upgraded the ratings of four classes in that deal.Moody's downgraded the rating of classes M and N to Caa1 from B3 and to Ca from Caa2, respectively, and upgraded the ratings of classes D (to Aaa from Aa1), E (to Aa3 from A1), F (to A2 from A3) and G (to Baa2 from Baa3). Other ratings in the deal were affirmed.