Servicing

Classes A-1 and A-2 of Diversified Asset Securitization Holdings I LP have been downgraded from A-minus to BB by Fitch Ratings.Fitch attributed the downgrades to deterioration in the credit quality of DASH's collateral portfolio. DASH I is a collateralized debt obligation managed by AAM Co. Fitch said 47.2% of the portfolio backing the CDO consists of residential mortgage-backed securities, and the remainder consists of commercial MBS (34.9%), asset-backed securities (13.2%), and other CDOs (4.7%).

Three classes of Citigroup Mortgage Loan Trust series 2003-1 have been downgraded by Fitch Ratings.The downgrades were as follows: class WB-3, from BBB to BB-minus; class WB-4, from BB-minus to CCC; and class WB-5, from CCC to CC. Fitch also affirmed the ratings on eight other classes in the transaction. The downgrades reflect deterioration in the relationship between credit enhancement and expected losses, the rating agency said. "Given the high outstanding delinquencies for pool W, Fitch does not feel that the protection offered by the subordination of the WB-6 bond is adequate to prevent a principal writedown of the WB-5 certificate from occurring," Fitch said. In addition, losses could exceed the protection offered by both the WB-5 and WB-4 bonds, eventually causing a principal writedown on the WB-3 bond. The loans consist of fixed-rate prime mortgages secured by first and second liens, primarily on one- to four-family residential properties.

Four classes from two issues of Wells Fargo Alternative Loan Trust mortgage-backed securities have been downgraded by Fitch Ratings.The downgrades were as follows: class B-4 of series 2002-1 and series 2003-1, from BB to BB-minus; and class B-5 of series 2002-1 and series 2003-1, from B to CCC. Fitch also affirmed the ratings on eight other classes from the two issues. The rating agency attributed the downgrades to a deterioration in the relationship between credit enhancement levels and expected losses. The securities are backed by 15- and 30-year fixed-rate mortgage loans secured by first liens, chiefly on one- to four-family residential properties. Fitch can be found online at http://www.fitchratings.com.

Popular Inc., a Puerto Rico-based financial services company, has announced the acquisition of substantially all the assets of Infinity Mortgage Corp., Parsippany, N.J., for an undisclosed purchase price.The acquired operations -- which serve New York, Connecticut, Maryland, Massachusetts, and Pennsylvania as well as New Jersey -- are now part of Equity One Inc., a subsidiary of Popular Financial Holdings Inc., which is a Popular Inc. subsidiary based in Marlton, N.J. Popular Inc. said the transaction expands its penetration into the U.S. market and "will complement the company's existing nonprime mortgage lending business through direct mail." It will also enable the company to expand its loan servicing business, Popular said. The company can be found on the Web at http://www.popularinc.com.

Class B-5 of Morgan Stanley Capital I Inc.'s series 1996-1 mortgage-backed securities has been downgraded from B to CCC by Fitch Ratings.In addition, the ratings on five other classes in the transaction were affirmed. The downgrade stemmed from deterioration in the relationship between credit enhancement and expected losses, Fitch said. "Given approximately $221,000 in outstanding foreclosures and historic loss severities, Fitch does not feel that the protection offered by the subordination of the B-6 (approximately $61,000) bond is adequate to prevent an eventual principal writedown of the B-5 certificate from occurring," the rating agency said.

Class B-3 of Nomura Asset Acceptance Corp. mortgage pass-through certificates, series 2001-R1, has been downgraded from BBB to BB by Fitch Ratings.Fitch also affirmed the ratings on five other classes in the deal. The downgrade was attributed to higher-than-expected collateral losses and deterioration in the relationship between loss expectations and credit support. As of October, the pool had incurred cumulative losses of 0.22% of the original collateral balance, and approximately 27% of the remaining pool balance was 90 or more days delinquent, the rating agency reported.

Two classes of Truman Capital Mortgage Loan Trust securities have been downgraded by Fitch Ratings.Class B of series 2002-1 was downgraded from BB to B, and class B of series 2002-2 was downgraded from BBB to BB. Fitch also affirmed the ratings on eight classes in the two deals. The downgrades were attributed to higher-than-expected losses that have reduced overcollateralization. The rating agency can be found online at http://www.fitchratings.com.

Class 3B-4 of Structured Asset Mortgage Investments Inc.'s series 1999-2 (group 3) mortgage-backed securities deal has been downgraded from CCC to CC by Fitch Ratings.In addition, Fitch upgraded two classes and affirmed the ratings on nine classes in two SAMI issues. The rating agency attributed the downgrade to a deterioration in the relationship between credit enhancement and loss expectations. Class 3B-4 currently has only 0.91% of credit enhancement, in the form of subordination, Fitch reported. The series is backed by 30-year fixed-rate mortgage loans extended to alternative-A borrowers.

NetBank Inc., Atlanta, has announced a delay in reporting its third-quarter financial results because of apparent "irregularities" in $13 million of conforming mortgage loans the company originated and sold to investors.The company said it intends to issue the third-quarter results after the close of the market on Nov. 14. "These loans appear to have some irregularities stemming from the appraisal and underwriting process," NetBank said. A telephone call with NetBank's management will follow the issuance of the results, and the call will be audiocast on the company's website, NetBank said. The company can be found online at http://www.netbankinc.com.

New foreclosed residential properties rose 8% in October to 21,998, chiefly as a result of relisted federal properties, according to Foreclosure.com, an online foreclosure listing service based in Boca Raton, Fla.The nationwide inventory of foreclosed residential properties totaled 87,794, nearly unchanged from the number in September, the company reported. The increase in new foreclosures was attributed to the relisting in 11 mostly Southeastern states of properties owned by the Department of Housing and Urban Development. Brad Geisen, president and chief executive officer of Foreclosure.com, said the U.S. foreclosure level remains low compared with where it stood at the start of the year. "While there are still pockets of increasing inventory in the Midwest and Northwest, foreclosure levels in most of the country have remained flat during the past six months," he said. The company can be found online at http://www.foreclosure.com.