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Class B-2 of Residential Accredit Loan Inc. mortgage pass-through certificates series 1999-QS2 has been downgraded from B to CCC by Fitch Ratings.In addition, Fitch upgraded or affirmed the ratings on 198 classes from 26 RALI securitizations. The downgrade was due to high delinquencies and losses, Fitch said. Anticipated losses could leave the class with no subordination, the rating agency said. Fitch can be found on the Web at http://www.fitchratings.com.

American Business Financial Services Inc., a Philadelphia-based company that originates, sells, and services home mortgage loans via subsidiaries, has announced that it cannot repay maturing debt obligations until a registration statement has been okayed by the Securities and Exchange Commission.ABFS said it filed the registration statement with the SEC in October, and cannot sell subordinated debentures until it is declared effective. The company said it cannot predict "whether or when" it will get through the SEC registration process. "The company's limited ability to sell subordinated debt during the second quarter of fiscal 2005 and the level of subdebt redemptions experienced during this period seriously depleted the company's cash," ABFS said. As a result of the liquidity problems, the company said it is not in compliance with several requirements of its credit facilities. "Under the terms of these credit facilities, this noncompliance creates an event of default, and the lenders may declare all amounts outstanding under the facilities immediately due and payable; however, to date, the lenders have not elected to take such action," ABFS reported.

NovaStar Financial Inc., a residential mortgage lender based in Kansas City, Mo., has issued a $201 million net interest margin security.The deal -- NovaStar NIM Trust, series 2004-N3 -- consisted of one class of certificates. The bonds are collateralized, self-amortizing debt issued to finance residual securities assets from two NovaStar securitizations, the company said. RBS Greenwich Capital and Wachovia Securities were the lead managers of the deal. NovaStar can be found on the Web at http://www.novastarmortgage.com.

Class B-5 of Bear Stearns Mortgage Securities Inc. series 1997-4 has been downgraded from B to B-minus by Fitch Ratings.The rating agency also upgraded two classes in another deal and affirmed the ratings on seven classes in the two securitizations. The downgrade was attributed to low credit enhancement levels relative to loss expectations. Fitch can be found on the Web at http://www.fitchratings.com.

Ten classes from five Long Beach Mortgage Co. asset-backed securities deals have been downgraded by Moody's Investors Service.The downgrades from Long Beach Home Mortgage Loan Trust Asset-Backed Certificates were as follows: series 2000-1, class M-2, from A2 to Baa3, and class M-3, from Baa1 to B2; series 2001-1, class M-2, from A2 to Baa2, and class M-3, from Baa1 to B1; series 2001-2, class M-2, from A2 to Baa2, and class M-3, from Baa2 to B2; series 2001-3, class M-2, from A2 to Baa2, and class M-3, from Baa2 to B1; series 2001-4, class M-2, from A2 to Baa1, and class M-3, from Baa2 to Ba3. The downgrades were attributed to inadequate credit enhancement given projected losses, and loss levels that have exceeded excess spread and eroded overcollateralization. Moody's can be found on the Web at http://www.moodys.com.

Related Capital Co. has closed a $254 million multi-investor corporate tax credit fund consisting of investments in Low Income Housing Tax Credits, according to Related Capital's New York-based parent company, CharterMac.The fund, Related Corporate Partners XXVIII LP, is the third multi-investor corporate tax credit fund closed by RCC this year and brings the total equity raised by the company to over $1.1 billion for the year, CharterMac said. The latest fund, with LIHTC equity investments in an estimated 25 properties across the country, was sold to six institutional investors. The parent company can be found online at http://www.chartermac.com.

American Residential Funding Inc., a nationwide mortgage banking and brokerage firm based in Costa Mesa, Calif., has begun trading over the counter on the Pink Sheets under the symbol ARFG.Vincent Rinehart, president and chief executive officer of AmRes, said the company's mortgage banking division will expand banking services to its own branch network, and that AmRes will roll out a wholesale loan program to other mortgage brokers in January. The company, which said it is licensed to originate loans in over 30 states, will remain a majority-owned subsidiary of Anza Capital Inc.

Class J of Credit Suisse First Boston Mortgage Securities Corp. mortgage pass-through certificates, series 1997-C1, has been downgraded from C to D by Fitch Ratings,In addition, the ratings on 10 other classes in the deal were affirmed. Fitch said the downgrade resulted from $5.2 million in losses realized after the liquidation of the Airlines Parking loan, which had been secured by an 8,400-space parking lot in Romulus, Mich. The rating agency said it does not expect the principal loss to be recovered.

Class B3 of CWMBS (Countrywide Home Loans) Inc. mortgage pass-through certificates, series 1999-13 (Alt 1999-2), has been downgraded from CCC to C by Fitch Ratings.The ratings on four other classes in the deal were affirmed. The downgrade was attributed to a $540,773 loss that "depleted class B-4's balance, leaving no credit enhancement to class B-3."

Classes A-1 and A-2 of Diversified Asset Securitization Holdings I LP have been downgraded from AA-plus to A-minus by Fitch Ratings.Fitch said DASH I is a collateralized debt obligation that was originated and managed by Asset Allocation & Management LLC, which closed Dec. 18, 1999. The portfolio backing the CDO consists of residential and commercial mortgage-backed securities, asset-backed securities, and other CDOs. The downgrades stem from collateral deterioration that has decreased overcollateralization ratios, the rating agency said. Fitch can be found online at http://www.fitchratings.com.