Servicing

Classes M-4 and M-5 of Ace Securities Corp.'s asset backed pass-through certificates, series 2004-HS1, have been placed on Rating Watch Negative by Fitch Ratings.Fitch also affirmed the ratings on four other classes in the transaction. The negative rating actions were attributed to higher-than-expected monthly losses that have exceeded the available excess spread in recent months, causing a deterioration in the overcollateralization amount. "In addition, cumulative loss and 60-or-more-days delinquency percentages (0.80% and 27.51%, respectively) for this transaction are significantly higher than the industry average (approximately 0.56% and 13.19%, respectively)," Fitch said. The pool consists of first-lien residential mortgage loans.

Class B-1 of Credit Suisse First Boston Mortgage Securities Corp. series 2002-HE11 has been downgraded from Baa2 to B1 by Moody's Investors Service.The downgrade was based on the fact that the bond's credit enhancement levels, including excess spread, are low compared with the projected losses, the rating agency said. The pool is backed by subprime first-lien loans.

Freddie Mac's board of directors has announced a dividend of $0.47 per share on the corporation's voting common stock for the third quarter, unchanged from that of recent quarters.The board also declared the following preferred stock dividends per share: $0.60 on its 1996 and 1998 variable-rate stock; $0.7675 on its 6.14% stock; $0.72625 on its 1997, 2001, and 2002 5.81% stock; $0.625 on its 5% stock; $0.6375 on its 1998 and 1999 5.1% stock; $0.6625 on its 5.3% stock; $0.72375 on its 5.79% stock; $0.4475 on its 1999 variable-rate stock; $0.49125 on its January 2001 variable-rate stock; $0.64528 on its March 2001 variable-rate stock; $0.48125 on its May 2001 variable-rate stock; $0.75 on its 6% stock; $0.7125 on its 5.7% stock; $0.625 on its 2006 variable-rate stock; and $0.65092 on its 6.42% stock. The dividends will be payable on Sept. 29 to stockholders of record as of Sept. 18.

Classes B-1 and B-2 of CDC Mortgage Capital Trust 2002-HE3 have been placed under review for possible downgrade by Moody's Investors Service.The actions were attributed to the weaker-than-expected performance of the mortgage pool and the resulting erosion of credit support. "The deal lost over $1 million of overcollateralization from July 2006 to August 2006, and future losses could cause further erosion of the overcollateralization and put pressure on the most subordinate tranches," Moody's said. The transaction consists primarily of first-lien subprime mortgage loans. The rating agency can be found on the Web at http://www.moodys.com.

Three classes in two Soundview Home Equity Loan Trust securitizations have been downgraded by Fitch Ratings, and one other class has been placed on Rating Watch Negative.The downgrades were as follows: series 2005-A, class B4, from BB-minus to C; and series 2005-B, class M14, from BB-minus to B-plus, and class M15, from B-plus to C. In addition, class B3 of series 2005-A was placed on Rating Watch Negative, class B4 of series 2005-A was assigned a Distressed Recovery rating of DR5, and class M15 of series 2005-B was assigned a Distressed Recovery rating of DR6. Fitch also affirmed the ratings on 28 other classes in the two transactions. The downgrades were attributed to a deterioration in the relationship between credit enhancement and loss expectations.

Three classes from Credit Based Asset Servicing and Securitization LLC mortgage loan asset-backed certificates, series 2002-CB5, have been downgraded by Fitch Ratings, and two have been removed from Rating Watch Negative.The downgrades were as follows: class B-1, from BBB to BB; class B-2, from BBB-minus to BB-minus; and class B-3, from BB to B-plus. Classes B-2 and B-3 were removed from Rating Watch Negative. Fitch also affirmed the ratings on four classes from the deal. The downgrades reflect a deterioration in the relationship between credit enhancement and loss expectations, the rating agency said. Fitch can be found on the Web at http://www.fitchratings.com.

Freddie Mac will issue its 2006 annual report late in the first quarter of 2007 and then turn its attention to getting out its quarterly financial reports "as quickly as possible," Freddie chairman and chief executive Richard Syron has told the company's annual shareholder meeting.After the annual report is issued, "our intent is to turn all our efforts" to the quarterly reports, Mr. Syron said in clarifying the company's timetable for returning to regular quarterly reporting. At the meeting, the shareholders approved the directors slate, including the addition of Robert Glauber to the board. Mr. Glauber is chairman and chief executive of the National Association of Securities Dealers and a former Treasury under secretary (1989-1992). The shareholders defeated a shareholder proposal that would require Freddie to disclose its corporate contributions to civil rights activist Jesse Jackson's organizations and other charities. Freddie Mac can be found online at http://www.freddiemac.com.

Countrywide Financial Corp. president and chief operating officer Stanford L. Kurland -- once considered a possible heir to chief executive officer Angelo Mozilo -- resigned from the company Thursday evening.Mr. Kurland was immediately replaced by David Sambol, a 21-year veteran of Countrywide who served as executive managing director of business segment operations. A source familiar with the situation told MortgageWire Mr. Sambol "is now in the path of succession" to succeed Mr. Mozilo, whose contract with the company expires at year-end. Who will succeed Mr. Mozilo as CEO, and when, "is now in the hands of the board," said the source. Mr. Mozilo also holds the title of chairman, which he has said he intends to keep after stepping down as CEO. Mr. Kurland worked at Countrywide, the nation's largest lender and servicer, for 28 years. In a statement, Mr. Mozilo said Mr. Kurland "has made significant contributions to Countrywide's success." The company can be found online at http://www.countrywide.com.

Classes M-2 and M-3 of Deutsche Alt-A Securities Inc. Mortgage Loan Trust, series 2003-4XS, have been placed under review for possible downgrade by Moody's Investors Service.The negative rating actions were attributed to credit enhancement levels that were deemed low given the projected losses on the underlying pools, which could cause "a more significant erosion" of overcollateralization. Moody's can be found on the Web at http://www.moodys.com.

Two classes of GS Mortgage Securities Corp. residential mortgage pass-through certificates, series 2003-HE1, have been downgraded by Fitch Ratings.Class B-1 of the transaction was downgraded from BBB to BBB-minus, and class B-2 was downgraded from BBB-minus to BB-plus. Fitch also affirmed the ratings on three other classes in the transaction. The downgrades were attributed to a deterioration in the relationship between credit enhancement and expected losses. The deal consists of subprime mortgage loans separated into two groups, one with conforming loans and one with all other loans. Fitch can be found online at http://www.fitchratings.com.