Servicing

Fitch Ratings has assigned its first construction loan servicer rating to JP Morgan Commercial Real Estate Loan Administration, Phoenix.CRELA is rated 'Acceptable' as a construction loan servicer for commercial real estate loans. (Fitch rates construction loan servicers 'Acceptable' or 'Unacceptable.') "The rating considers CRELA's extensive history of construction loan administration, project underwriting and servicing, experienced and tenured management and staff, and the strong operational risk and financial resources provided by its parent, JP Morgan Chase & Co.," Fitch said. The rating also considers CRELA's "extensive use" of technology. Fitch said it is the first rating agency to publish criteria for the rating of construction loan pools. It can be found online at http://www.fitchratings.com.

The bull market in residential mortgage-backed securities in recent years appears to have run its course, according to a new report published by Standard & Poor's Ratings Services.As evidence, S&P pointed to slowing home price appreciation, diminished profitability for mortgage lenders, widening credit spreads, and an acceleration of negative rating actions. Issuance will decline in 2007 by as much as 10%-15%, bringing the dollar amount to $900 billion-$950 billion, S&P said. However, the rating agency said RMBS issuance will still be significantly higher than in 2003 and 2004, when it totaled $586 billion and $864 billion, respectively. "We foresee further compression of the upgrade-to-downgrade ratio because fewer outstanding transactions are now collateralized by prime mortgage loans, and the recent trend in securitization is toward structures with fewer speculative-grade ratings," the rating agency said. S&P said it expects more downgrades and fewer upgrades this year. The report is titled, "For U.S. RMBS, 2007 Will Be a Year of Transition for Issuance and Performance Concerns." S&P can be found online at http://www.standardandpoors.com.

Citigroup has agreed to purchase ABN Amro Mortgage Group, Ann Arbor, Mich., for an undisclosed sum, a purchase that will make it the nation's fourth-largest residential servicer, with $728 billion in receivables.The sale effectively removes AAMG -- once the nation's largest wholesale funder -- as a major player in mortgages. The sale includes the broker platform, InterFirst, and Mortgage.com. AAMG's parent, LaSalle Bank Corp., will continue to fund mortgages and home equity loans through its branch network. According to a statement issued by ABN, Citi will purchase $9 billion in net assets, $3 billion of which represents the value of ABN's $228 billion servicing portfolio. In November, National Mortgage News broke the news that ABN Amro was for sale. The deal is expected to close by the end of the first quarter. The companies can be found online at http://www.citigroup.com and http://www.abnamro.com.

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.