Servicing

Freddie Mac has announced that it is encouraging its servicers to help borrowers affected by the wildfires in Southern California.The company's disaster relief guidelines, which are designed to allow victims to avoid further financial damage, allow affected Freddie Mac borrowers to reduce or suspend mortgage payments for up to one year. The company is also asking servicers to waive assessments of penalties or late fees to victims of the fires, not to report forbearance or delinquencies caused by the fires, and to expedite the release of insurance claims.

The PMI Group, Walnut Creek, Calif., has priced an offering of 5 million shares of common stock at $38.20 per share and a concurrent offering of 12 million 5.875% equity units at $25 per share.The gross proceeds of the stock sale are expected to total $191 million, and the gross proceeds of the equity unit sale are projected at $300 million. PMI said it plans to use the net proceeds of the offerings to fund a portion of its previously announced investment in Financial Guaranty Insurance Co. as well as for general corporate purposes. PMI Group can be found online at http://www.pmigroup.com.

Class B of American Residential HE Loan Trust, series 1998-1, has been placed on Rating Watch Negative by Fitch Ratings.On the August distribution date, a principal prepayment reduced the pool balance by about $605,000, approximately 11% of the outstanding balance, Fitch reported. The prepayment was applied as a reduction of overcollateralization instead of a principal payment to the rated classes, and as a result, available credit enhancement was depleted and class B realized a loss of $56,320. Fitch said it believes the loss "would not have occurred had the distribution of principal been made in accordance with the terms of the pooling and servicing agreement," adding that the trustee, Deutsche Bank, is reviewing the transaction. The rating agency said class B will be downgraded if it is determined that the payment was made correctly, and affirmed if the payment was made in error.

Two classes of Saxon Asset Securities Trust residential mortgage-backed securities have been downgraded by Fitch Ratings, and three classes have been placed on Rating Watch Negative.The downgrades were as follows: series 1998-3 group 1, class BF-3, from B to CCC; and series 1998-3 group 2, class BV-3, from B to CCC. Class BF-2 of the first deal and class BV-1 of the second deal were placed on Rating Watch Negative, as well as class BF-1 of series 2001-1 group 1, the rating agency said. In addition, the ratings on 30 other classes of Saxon deals were affirmed. Fitch attributed the negative rating actions to loss levels and high delinquencies relative to applicable credit support.

Freddie Mac has completed an initial reorganization of its senior-level positions and says it is forging ahead with plans for product development and securities performance improvements in the wake of firings related to its earnings restatement scandal.The reorganization is designed to bring the government-sponsored enterprise's single-family mortgage funding and participation certificate groups in closer alignment with each other, among other things. Mike May, formerly senior vice president and chief operating officer of single-family operations, will fill a new position as senior vice president for mortgage sourcing, operations, and funding. In his new role he will have direct responsibility for Freddie Mac's relationships with lenders, servicers, and investors in the corporation's mortgage-backed securities and will report directly to Paul Peterson, the corporation's executive vice president and chief operating officer. Several other positions were also affected by the reorganization, and the company says it plans to hire other senior-level executives. Freddie Mac can be found online at http://www.freddiemac.com.

Seattle-based Washington Mutual has announced that customers in Southern California who are victims of wildfires in federally declared disaster areas are eligible for various disaster relief programs.WaMu said the programs include accelerated home equity loans at reduced rates, flexible mortgage payment schedules, and penalty-free withdrawals from time deposits. The company also said it is donating $250,000 to the American Red Cross Disaster Relief Fund and collecting additional donations for disaster aid at its branch offices. Mortgage customers in affected areas may call a special fire disaster help line at 800-472-1254. The company can be found online at http://www.wamu.com.

HanoverTrade Inc., Edison, N.J., has announced its selection as marketing agent for the Federal Deposit Insurance Corp. (as receiver for the First National Bank of Keystone) in a $180 million trust termination sale.The assets to be liquidated consist of Keystone Home Equity Loan Trust 1996-1 and the following series of First National Bank of Keystone FHA Title I loan asset-backed certificates: series 1995-3, 1995-4, 1995-6, 1996-2, 1996-3, 1996-P1, and 1996-P2. The trust assets are being offered in three pools, ranging in size from $11 million to $123 million, the company said. The bid date is scheduled for Dec. 10. HanoverTrade is a subsidiary of Hanover Capital Mortgage Holdings Inc., a mortgage real estate investment trust. It can be found online at http://www.hanovertrade.com.

Two classes of IndyMac ABS Inc. home equity issues have been downgraded by Fitch Ratings and a third has been placed on Rating Watch Negative.The downgrades were as follows: series SPMD 2000-B group 1, class MF2, from BBB-minus to B; and series SPMD 2000-B group 1, class BF, from B-minus to CC. Class BF of series SPMD 2001-B was placed on Rating Watch Negative. In addition, class MF1 of series SPMD 2000-B group 1 was removed from Rating Watch Negative, and the ratings on 20 classes in the two deals (plus a third) were affirmed, Fitch said. The rating agency attributed the downgrades to "adverse collateral performance and the deterioration of asset quality outside of Fitch's original expectations." Fitch said the percentage of manufactured housing collateral in IndyMac SPMD 2000-B group 1 had more than doubled (to 27.7%) as of September 2003, and that "MH loans have exhibited very high historical loss severities, causing Fitch to have concerns over the available enhancement in this deal." The transaction includes mortgage insurance policies from both the lender and the borrower on about 40% of the mortgage pool, but Fitch said illiquidity in the market has slowed down the resolution of insurance claims and the liquidation of MH collateral in such deals. Fitch can be found online at http://www.fitchratings.com.

Two classes of Structured Asset Securities Corp. mortgage pass-through certificates have been downgraded by Fitch Ratings.The B-4 classes of SASCO 2001-2 and SASCO 2001-9 were downgraded from BB to B, Fitch said. In addition, the rating agency upgraded seven classes and affirmed the ratings on 23 classes from five SASCO deals. Fitch attributed the downgrades to loss levels, future loss expectations, and high delinquencies in relation to applicable credit support.

Two classes of Industry Mortgage Co.'s series 1998-1 securitization have been downgraded by Fitch Ratings.The downgrades were as follows: class M-2, from A-plus to BBB-minus; and class B, from BB-minus to B-minus. Fitch also affirmed the ratings on three other classes in the deal. The rating agency attributed the downgrades to loss levels and high delinquencies in relation to the applicable credit support. Fitch can be found online at http://www.fitchratings.com.