Servicing

Fitch Ratings has assigned Wachovia Bank NA an RPS2 residential primary servicer rating for home equity and prime products.Fitch said the rating is based on the company's "experienced and tenured management team, effective performing-loan management procedures, and its extensive training programs." Fitch rates residential servicers on a scale of 1 to 5, with 1 being the highest rating. Wachovia Bank, based in Charlotte, N.C., can be found online at http://www.wachovia.com.

The Prestwick Mortgage Group, Alexandria, Va., is brokering the sale of servicing rights on a $35 million portfolio of Freddie Mac home loans, primarily from Pennsylvania.The fixed-rate, owner-occupied portfolio has a weighted average note rate of 4.811%, an average loan balance of $122,339, and weighted average seasoning of 33 months. None of the loans are in foreclosure or bankruptcy. The bid deadline is Jan. 25.

Interactive Mortgage Advisors, Denver, is brokering a $172 million package of Freddie Mac, Fannie Mae, Ginnie Mae, and private bulk servicing rights.IMA said the weighted average interest rate of the offering is 6.030%, and the weighted average service fee is 0.278%. The average loan size is approximately $80,200, and more than 99% of the loans are concentrated in Oklahoma. The bid deadline is Jan. 25.

Williams & Williams, a real estate auction firm based in Tulsa, Okla., has announced plans to launch a program to help delinquent mortgage borrowers and their secured lenders avoid foreclosure via advance auction sales.The Assisted Sales Auction Program allows a property to be sold before foreclosure takes place and offers the settlement of the obligations and a reduction in losses for all parties, Williams & Williams said. "We had already successfully used ASAP with many national lenders in 2006, offering it to the lenders as a loss mitigation program to reduce the costs they incur from defaults and foreclosures," said Dean Williams, president and chief executive officer of the auction firm. "We realized that it also was very beneficial to borrowers as well, and have decided to offer ASAP to them directly as a way to avoid foreclosure and everything associated with it." The company can be found on the Web at http://www.williamsauction.com.

Two classes of Meritage Mortgage Loan Trust series 2004-1 have been downgraded by Fitch Ratings, and two other classes have been placed on Rating Watch Negative.Class M-8 was downgraded from BBB-minus to BB-minus, and class B-1 was downgraded from BB-plus to B-plus. Classes M-6 and M-7 were placed on Rating Watch Negative. Fitch said the negative rating actions were due to a deteriorating relationship between losses and excess spread that is likely to prevent overcollateralization from maintaining its target amount.

Two classes of Asset-Backed Securities Corp. Long Beach Home Equity Trust mortgage pass-through certificates have been downgraded by Fitch Ratings.Class M2V of series 2000-LB1 group 2 was downgraded from BB-plus to BB, and class BV was downgraded from CC/DR4 to C/DR5. In addition, Fitch affirmed the ratings on five classes of group 1 in the transaction. The rating agency attributed the downgrades to continued deterioration in the relationship between credit enhancement and loss expectations. The subprime mortgage loans underlying the transaction were acquired by ABSC from Long Beach Mortgage. Fitch can be found online at http://www.fitchratings.com.

The net income of Washington Mutual Inc.'s home loan segment plummeted by more than $1 billion last year, although profits exceeded $3.5 billion for the company overall, the Seattle-based thrift has reported.WaMu reported a net loss of $48 million in its Home Loans Group for 2006, compared with net income of $1.03 billion in 2005. For the fourth quarter, the thrift reported a net loss of $122 million in the Home Loans Group, compared with a $24 million loss in the previous quarter and net income of $57 million in the fourth quarter of 2005. Originations of home loans declined 6% in the fourth quarter and 22% for the year. WaMu attributed the nosedive in the mortgage segment's profits to "the continued slowing of the housing market and a significant weakening of overall subprime market conditions." The company said higher delinquencies on subprime home loans and weaker market conditions shaved $160 million from its pretax earnings in the fourth quarter. Overall, WaMu reported net income of $3.56 billion ($3.64 per share) for the year, up from $3.43 billion ($3.73 per share) for 2005. WaMu can be found online at http://www.wamu.com.

Two classes of First Franklin Financial Corp. residential mortgage-backed certificates have been downgraded by Fitch Ratings, and three classes have been placed on Rating Watch Negative.Class M-8 of series 2004-FFH1 was downgraded from BBB to BB, and class M-9 was downgraded from BBB-minus to BB-minus. Class M-7 of the series and classes B-1 and B-2 of series 2004-FFH2 were placed on Rating Watch Negative. In addition, Fitch affirmed the ratings on 16 classes from the two transactions. The negative rating actions were attributed to a deteriorating relationship between credit enhancement and expected losses. The collateral for the transactions consists of first-lien subprime loans. Fitch can be found online at http://www.fitchratings.com.

RealtyTrac, an online foreclosure marketplace based in Irvine, Calif., has reported that the number of new properties in some stage of foreclosure fell nearly 9% in December, though it was up 35% from that of a year earlier.The company's Monthly U.S. Foreclosure Market Report indicates that 109,652 new foreclosure properties were added to the rolls in December. "New foreclosure filings surpassed the 100,000 level for the fifth straight month, something we've not seen since we began issuing our foreclosure market report in January 2005," said Jim Saccacio, RealtyTrac's chief executive officer. "While the number of new foreclosure filings dropped back from the high point of 2006 in November, the combination of slower home sales and rising interest rates on adjustable mortgages continues to drive foreclosures at significantly higher numbers than a year ago." The company said Colorado recorded the highest foreclosure rate of any state in December -- one new filing for every 376 households. RealtyTrac can be found online at http://www.realtytrac.com.

Hanover Capital Mortgage Holdings, Edison, New Jersey, has sold assets associated with its due diligence business to Terwin Acquisition, which does business as The Winter Group.The sale, which includes the assumption of certain liabilities, is expected to generate $4.7 million for Hanover after the collection of receivables retained by the company. Hanover, a real estate investment trust that invests in mortgage assets, said it plans to reinvest the proceeds in its portfolio. Tom Guba, president of The Winter Group, said his company plans to maintain Hanover's due diligence client relationships. "When combined with our existing due diligence operation in Denver and our IT capabilities, this transaction makes us a significant provider of outsourced solutions to the mortgage industry," he said. Winter maintains a capital markets residential sourcing, securitization, trading, and distribution platform. The company also has mortgage servicing and asset management capabilities. Hanover can be found online at http://www.hanovercapitalholdings.com.