Servicing

Three classes from two Delta Funding Corp. home equity transactions have been downgraded by Fitch Ratings.The downgrades were as follows: series 2000-1, class B, from CC to C; and series 2000-3, class M-2, from A to A-minus, and class B, from B-minus to C. In addition, Fitch upgraded two classes and affirmed the ratings on seven classes from four Delta issues. "Due to performance triggers that are in breach in all the transactions, principal distributions on the certificates are currently applied in a sequential order," Fitch reported. This generally results in lower credit risk for the more senior tranches, the rating agency said. "There is, however, a higher degree of risk associated with the lower priority of payment to the subordinate classes, represented by the downgrades in series 2000-1 and series 2000-3," Fitch explained. The collateral for the deals consists of both fixed- and adjustable-rate subprime mortgages.

Operation Hope Inc. and the Federal Emergency Management Agency have announced the formation of Project Restore Hope, an economic recovery initiative for Hurricane Katrina victims that includes assistance in deferring mortgage payments.The project will provide economic assistance as well as free financial counseling online, in communities housing disaster evacuees, at FEMA Disaster Recovery Centers in Louisiana, Mississippi, Alabama, and Los Angeles, and over the phone from call center facilities in Dallas and Poway, Calif. Project Restore Hope will be managed through OHI's emergency recovery division, Hope Coalition America, which is recruiting "Hope Corps volunteers" with financial and accounting backgrounds. The volunteers will provide assistance in deferring mortgage payments, working with creditors, and filing insurance claims, as well as emergency budget guidance and credit management. "FEMA has formed a relationship with Operation Hope and Hope Coalition because they offer a unique and much-needed set of services, aimed at limiting the economic impact on individuals affected by these disasters," said David Garratt, acting director of FEMA's Recovery Division. OHI can be found online at http://www.operationhope.org.

Freddie Mac said it could lose up to $300 million due to property damage caused by hurricanes Katrina and Rita.The mortgage giant said the anticipated loss is tied to its guarantee of principal and interest payments on participation certificates (PCs) that are collateralized by mortgages in three of the hardest-hit states: Alabama, Louisiana, and Mississippi. Less than 1% of Freddie's guaranteed portfolio was affected by hurricane-related damage. The loss would be booked in the third quarter as a charge against earnings. "This represents most of the losses we anticipate from the hurricanes," said a company spokesman. Meanwhile, at MortgageWire's deadline, the government-sponsored enterprise announced that it would buy back up to $2 billion worth of its common stock, depending on market conditions. Freddie Mac can be found online at http://www.freddiemac.com.

Foreclosures jumped 14% in New York and Chicago in August, and 19% in Los Angeles, according to RealtyTrac, an online foreclosure marketplace based in Irvine, Calif.The surge in New York foreclosures -- 2,223 properties entered some stage of foreclosure in August -- followed two consecutive months of declines. "The increase could turn out to be a one-month spike, but if foreclosures continue to rise in the coming months, that may signal a significant shift in New York City's real estate market," said James J. Saccacio, RealtyTrac's chief executive officer. In the Chicago area, Cook County reported 2,149 foreclosures, one for every 975 properties, RealtyTrac reported. "While foreclosures nationwide dipped slightly in August, Chicago and several other major metropolitan areas reported more foreclosures," Mr. Saccacio said. "If foreclosures continue to increase in major metropolitan areas, it could be a signal that more homeowners in those typically high-priced areas are reaching the ceiling of what they can afford." In Los Angeles, 1,232 foreclosures were reported in August, one for every 2,655 households. "Since May, when there were only 771 foreclosures, the city has reported more than 1,000 foreclosures each month," Mr. Saccacio said. RealtyTrac can be found online at http://www.realtytrac.com.

Interactive Mortgage Advisors, Denver, is selling a $1.5 billion package of Fannie Mae alternative-A bulk servicing rights with a "flow" component.IMA is brokering the receivables for what it calls a "highly reputable" Wall Street client. Under the flow portion, the seller will provide $750 million to $1 billion a month in additional receivables, bringing the total deal size to $10.5 billion to $13.5 billion. The bid deadline is Thursday, Oct. 13. IMA is auctioning off two other Fannie bulk deals -- one with $206 million in receivables, and another with $26 million.

Freddie Mac has joined forces with Mississippi Home Corp. in Jackson, Miss., in providing $900,000 for the acquisition and positioning of more than 35 travel trailer units that will be used to provide temporary housing to Mississippians displaced by hurricanes Katrina and Rita."Freddie Mac's monetary partnership with MHC, the state's housing finance authority, will enhance our efforts of making temporary housing readily accessible for displaced persons affected by the destruction of the recent storms," said Mississippi Gov. Haley Barbour. The temporary units will be placed on a homeowner's property and tied into existing utilities during the reconstruction of the home. Six units have been set in place and the balance should be in place by the end of October. MHC is accepting applications through its website from homeowners needing temporary housing but who are ineligible for Federal Emergency Management Agency housing assistance. Freddie Mac can be found online at http://www.freddiemac.com, and MHC can be found at http://www.mshc.com.

Five classes of certificates issued in CSFB Trust 2002-NP14 have been downgraded by Moody's Investors Service.The downgrades were as follows: class A, from A3 to Ba3; class M1, from Baa2 to B2; class M2, from Ba2 to Caa1; class B1, from B2 to Ca; and class B2, from Caa2 to C. The downgrades were attributed to "high and increasing loss severities on liquidated loans which have led to the rapid deterioration of overcollateralization." This has placed the subordinate bonds at greater risk of default and reduced the enhancement available to the senior tranche, the rating agency said. The transaction is primarily backed by nonperforming mortgage loans, which are typically defined as loans that are delinquent by 90 days or more, subject to bankruptcy or foreclosure proceedings, or held as real estate owned. Moody's can be found online at http://www.moodys.com.

RealtyTrac, an online foreclosure marketplace based in Irvine, Calif., has reported that the number of new properties in some stage of foreclosure declined 4.3% in August after two consecutive months of increases.The company's Monthly U.S. Foreclosure Market Report indicates that 75,599 new foreclosure properties were added to the rolls in August. "After consecutive months of increasing foreclosures, the rates across the country seem to have stabilized in August," said Jim Saccacio, RealtyTrac's chief executive officer. "But it appears that the overall decrease in national foreclosures may be somewhat inflated due to the damage caused by Hurricane Katrina." The company said Texas and Florida "continued to dominate" the foreclosures market, accounting for more than 30% of the nation's total. RealtyTrac can be found online at http://www.realtytrac.com.

Maverick Residential Mortgage Inc., Frisco, Texas, has announced plans to raise $100,000 to benefit victims of Hurricane Katrina.The company, which finances the purchase of homes in Dallas, Collin, Tarrant, and Denton counties as well as throughout Texas and in 23 other states, will contribute a portion of its mortgage proceeds for every loan closed through Dec. 31, 2005. Maverick's more than 350 employees have been invited to make donations to the company's Katrina Fund. All money will be funneled to the American Red Cross and the American Society for the Prevention of Cruelty to Animals Disaster Relief Fund to help people and animals displaced by the deadly storm. The firm said it is waiving its lender closing costs for individuals who have been forced to relocate as a result of the disaster. The website can be found online at http://www.maverickmortgage/katrinafund.

The Mortgage Bankers Association has announced a $500,000 commitment to Habitat for Humanity International to provide a program management office for Habitat's rebuilding efforts in Gulf Coast areas affected by Hurricane Katrina.The MBA said the commitment will enable Habitat's Gulf Coast efforts to begin with the Operation Home Delivery program, which it termed "an unprecedented effort to build more houses in the U.S. than any other previous Habitat project." The association noted that the commitment followed its recent donation of $100,000 to the American Red Cross (plus staff contributions of $8,600) toward its post-Katrina relief efforts. The MBA can be found online at http://www.mortgagebankers.org.