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Twenty-nine classes from 10 Credit Suisse First Boston home equity securitizations have been downgraded by Fitch Ratings.In addition, the ratings on 97 classes from 18 CSFB deals have been affirmed. The downgrades were attributed to a deterioration in the relationship between credit enhancement and loss expectations. The rating agency said the collateral backing the transactions consists of first- and second-lien fixed- and adjustable-rate subprime mortgage loans.

Fifty-eight classes from 15 Structured Asset Investment Loan Trust mortgage pass-through certificates have been downgraded by Fitch Ratings.In addition, Fitch affirmed the ratings on more than 100 classes from 23 SAIL transactions. The rating agency attributed the downgrades to a deterioration in the relationship between credit enhancement and expected losses. The collateral in the deals consists primarily of conventional fixed- and adjustable-rate, fully amortizing and balloon, first- and second-lien residential mortgage loans. Fitch can be found on the Web at http://www.fitchratings.com.

Countrywide Financial Corp. Calabasas, Calif., is creating a new 15-person unit in Calabasas to review the entire company's processes from top to bottom, one mortgage executive familiar with the matter has told MortgageWire.The executive, requesting anonymity, said: "They are going to review everything." He added that, "All businesses will be looked at to see if they are doing things the right way." At deadline time, a company spokeswoman had not returned telephone calls about the matter. According to the Quarterly Data Report, Countrywide is the nation's largest 'A' paper lender and the third-largest subprime funder.

The Homeownership Preservation Foundation, Minneapolis, has reported a "significant jump" in the number of homeowners calling its 888-995-HOPE hotline for assistance in avoiding foreclosure.The national hotline, which helps borrowers who are behind on their mortgage payments, received more than 14,000 calls in the first quarter, a 30% increase from the total received in the fourth quarter, the foundation said. (More than 25,000 homeowners called the hotline in all of 2006.) "Currently, more than 300 homeowners call 888-995-HOPE daily," said Colleen Hernandez, president and executive director of the foundation. "The increase in the number of calls is a direct result of the rising number of homeowners suddenly finding themselves in the position of potentially losing their homes, combined with the growing awareness of the hotline as a result of a nationwide public service campaign." More information on the hotline can be found on the Web at http://www.995hope.org, and the foundation can be found at http://www.hpfonline.com.

Rising subprime mortgage defaults threaten to exacerbate an oversupply of housing inventory, according to a new report published by Standard & Poor's Ratings Services.The recently published article, "Credit FAQ: How Subprime Woes Might Affect Rated Homebuilders," addresses the potential effect of the subprime situation on homebuilders' captive finance subsidiaries, the glut of unsold homes, and other "hot-button" issues. "We haven't taken any rating actions on homebuilders solely because of the subprime issue," said credit analyst James Fielding. "However, rising foreclosure rates and tightening consumer credit raise additional red flags regarding a cyclical housing downturn that is already deeper and broader than previously anticipated. What's more, the duration of this downturn will be a function of how well the economy, and job growth, holds up over the next year, since it is the steady absorption of excess housing supply that will lead to eventual stabilization." S&P can be found online at http://www.standardandpoors.com.

Two classes of Diversified Asset Securitization Holdings III LP, a collateralized debt obligation based in part by residential and commercial mortgage-backed securities, have been downgraded by Fitch Ratings.Class A-3L was downgraded from BB to B/DR1, and class B-1L was downgraded from CC/DR3 to C/DR6. Fitch said there have been further writedowns on some previously defaulted bonds since its last rating action on the deal, in March 2006. Fitch said DASH III is a CDO that was originated and managed by Asset Allocation & Management LLC, but that TCW Asset Management Co. became the substitute asset manager for AAMCO in October 2002. The portfolio backing the CDO consists of RMBS, CMBS, asset-backed securities, and real estate investment trusts.

Four classes of Countrywide asset-backed securitizations have been downgraded by Fitch Ratings, and eight classes have been placed on Rating Watch Negative.The downgrades were as follows: series 2006-SPS1, class M-8, from BBB-plus to BB-plus, class M-9, from BBB to BB, and class B, from BBB-minus to BB-minus; and series 2006-SPS2, class B, from BBB-minus to BB-minus. The four downgraded classes were placed on Rating Watch Negative, as were classes M-6 and M-7 of series 2006-SPS1 and classes M-8 and M-9 of series 2006-SPS2. In addition, Fitch affirmed the ratings on 14 other classes in the two deals. Fitch attributed the negative rating actions to deterioration in the relationship between credit enhancement levels and loss expectations.

Three certificates from Long Beach Mortgage Loan Trust series 2006-A have been downgraded and maintained on review for possible further downgrade by Moody's Investors Service, and nine other certificates from the deal have been placed on review for possible downgrade.The downgrades were as follows: class M-7, from Baa3 to B1; class B-1, from Ba1 to B3; and class B-2, from Ba2 to Ca. The classes placed on review for possible downgrade are as follows: A-1, A-2, A-3, M-1, M-2, M-3, M-4, M-5, and M-6. "The projected pipeline loss has increased over the past a few months and may affect the credit support for the three [downgraded] certificates," Moody's said. The placing of the other nine certificates on review for possible downgrade was also based on the fact that the bonds' credit enhancement levels may be too low, in view of projected losses, for the current rating levels. The transaction is backed by subprime second-lien loans.

Twenty-three classes from 10 Long Beach Mortgage Loan Trust transactions have been downgraded by Fitch Ratings.Fitch also affirmed the ratings on 91 classes from 21 Long Beach transactions. The negative rating actions were attributed to a continued deterioration in the relationship between credit enhancement levels and loss expectations. All the mortgages in the various transactions -- consisting of fixed- and adjustable-rate subprime loans -- were either originated or acquired by Long Beach Mortgage Co.

Four certificates from Ace Securities Corp. Home Equity Loan Trust series 2006-SL2 have been downgraded and maintained on review for possible further downgrade by Moody's Investors Service, and 10 other certificates from the deal have been placed on review for possible downgrade.The downgrades were as follows: class M-8, from Baa2 to B1; class M-9A, from Baa3 to B3; class M-9B, from Baa3 to B3; and class B-1, from Ba1 to Ca. The additional classes placed on review for possible downgrade are as follows: A, M-1, M-2A, M-2B, M-3, M-4, M-5, M-6A, M-6B, and M-7. Moody's attributed the negative rating actions to "the fact that the bonds' credit enhancement levels, including excess spread, may be too low compared to the current projected loss numbers at the current rating level." The transaction is backed by subprime second-lien loans.