Servicing

Class B of Residential Asset Mortgage Products Inc. series 2001-RZ3 has been placed under review for possible downgrade by Moody's Investors Service.The transaction is backed by first-lien, fixed-rate mortgage loans with high loan-to-value ratios that were originated under the company's Home Solution Program. The rating action was attributed to credit enhancement levels that may be low given the projected losses on the underlying pools, Moody's said.

Two certificates from an Ameriquest asset-backed securitization deal issued in 2001 have been downgraded by Moody's Investors Service.Class M-2 of ABFC Mortgage Loan Asset-Backed Certificates, series 2001-AQ1, was downgraded from A2 to Baa3, and class B of the deal was downgraded from Ba2 to B2, Moody's reported. The classes were downgraded because credit enhancement levels are low given the projected losses on the underlying pools, the rating agency said. "The transaction has taken losses, and pipeline loss could cause eventual erosion of the overcollateralization," Moody's said. The deal consists of fixed-rate, first-lien subprime mortgage loans. The servicer and the originator on the transaction is Ameriquest Mortgage Co., and Litton Loan Servicing LP is the special servicer. Moody's can be found online at http://www.moodys.com.

Twenty-six classes from eight Long Beach home equity and mortgage loan securitizations have been downgraded by Fitch Ratings.The downgrades from Asset Backed Securities Corp., Long Beach Home Equity Loan Trust series 2000-LB1 were as follows: group 1, class M1F, from AA to BBB-plus, and class M2F, from BBB-minus to B, and group 2, class BV, from BB-minus to C. The downgrades from Long Beach Home Mortgage Loan Trust deals were as follows: series 2000-1, class M-2, from BBB-minus to BB-minus, and class M-3, from CCC to C; series 2001-1, class M-1, from AA to A, class M-2, from BBB to B-plus, and class M-3, from BBB to BB; series 2001-2, class M-1, from AA to A, class M-2, from BBB to BB, and class M-3, from B to C; series 2001-3, class M-2, from BBB-plus to BBB-minus, and class M-3, from B to C; series 2001-4 group 1, class I-M2, from A-minus to BBB-minus, and class I-M3, from B-plus to C, and series 2001-4 group 2, class II-M2, from A to BBB-minus, and class II-M3, from BB-minus to C; series 2002-1 group 1, class I-M3, from BBB to BB, and series 2002-1 group 2, class II-M3, from BBB to BB, and class II-M4, from BB-plus to B; series 2002-2 group 1, class I-M3, from BBB to BBB-minus, class I-M4A, from BBB-minus to B, and class I-M4B, from BBB-minus to B, and series 2002-2 group 2, class II-M3, from BBB to BBB-minus, and classes II-M4A and II-M4B, from BBB-minus to B. In addition, Fitch affirmed the ratings on 40 classes in 11 Long Beach deals. The downgrades were attributed to high loss levels that have triggered a "rapid decline" in credit enhancement. Fitch can be found on the Web at http://www.fitchratings.com.

The Prestwick Mortgage Group, Alexandria, Va., is brokering the sale of servicing rights on $214 million of Fannie Mae and Freddie Mac loans from Florida.The portfolio has a weighted average note rate of 5.975% and a weighted average servicing fee of 0.2577%, Prestwick reported. The average loan balance is $126,026, with 25 months of weighted average seasoning. The vast majority of the loans were retail-originated and are backed by Florida homes. The bid deadline is Thursday, May 26.

Accredited Home Lenders Holding Co., a national nonprime mortgage lender based in San Diego, has announced the establishment of a $1.0 billion extendible note asset-backed commercial paper conduit through its subsidiary, Carmel Mountain Funding Trust.The trust will finance mortgage loans through the issuance of extendible ABCP rated A-1+/P-1 and subordinated debt rated BBB/Baa2 by Standard & Poor's and Moody's Investors Service, respectively. Mortgage loans financed by Carmel Mountain Funding -- a special purpose, bankruptcy-remote trust formed by Accredited Home Lenders Inc., a wholly owned subsidiary of the holding company -- will occasionally be directed into securitizations or whole-loan sales and may be replaced with new mortgage loans, the company said. Jim Konrath, Accredited's chairman and chief executive officer, said the conduit represents "a big step forward" for the company. "Directly accessing the commercial paper markets increases our warehouse capacity, provides a lower funding cost for loans we originate, and enhances our ongoing strategy of diversification throughout the company," Mr. Konrath said. The company can be found online at http://www.accredhome.com.

Class IIIA of Ace Securities Corp. series 2002-Z has been placed under review for possible downgrade by Moody's Investors Service.The rating action was based on the low amount of enhancement provided by a reserve fund, Moody's said. The transaction is a resecuritization backed by other residential mortgage-backed securities.

Class C of Structured Mortgage Trust 1997-1, a resecuritization backed by other residential mortgage-backed securities, has been downgraded from B2 to Caa3 by Moody's Investors Service.Moody's also confirmed the rating of another class in the transaction. The downgrade was attributed to the weak performance of the underlying securities and the depletion of all credit enhancement originally available to the class.

Two classes from CS First Boston Mortgage Securities Corp. series 1997-1R, a resecuritization backed by other residential mortgage-backed securities, have been downgraded by Moody's Investors Service.Class 1-B3 was downgraded from B2 to B3, and class 1-B4 was downgraded from B3 to Caa2. In addition, Moody's upgraded three other classes from the transaction. The downgrades were attributed to weak performance by the underlying securities and reduced credit enhancement relative to the projected losses on the underlying securities.

The class A notes of SASCO Net Interest Margin Trust 2003-12XS have been downgraded from Baa1 to Ba2 by Moody's Investors Service.Moody's said the performance of the underlying deals has negatively affected future residual payments to the NIM holders. Greater-than-expected delinquencies have caused the excess cash flow paid to the NIM by the underlying deal, Structured Asset Securities Corp. 2003-12XS, to fall consistently below what was originally expected, and it could continue to diminish, the rating agency said. Moody's can be found online at http://www.moodys.com.

The class A notes of Asset Backed Funding Corp., NIM Trust 2001-AQ1, have been downgraded from Baa3 to B3 by Moody's Investors Service.Net-interest-margin transactions such as this one represent the securitization of excess spread, prepayment penalties, and cap payments generated by the underlying residential mortgage-backed securities, Moody's noted. "These residual cash flows are sensitive to a number of factors including prepayment speeds, cumulative losses incurred on the underlying deal's collateral, the impact of a step-down date, and breach of triggers," the rating agency said. The downgrade was based on the underlying deal's performance, which has negatively affected future residual payments to the NIM holders, Moody's said. The underlying deal, ABFC Mortgage Loan Asset-Backed Certificates Series 2001-AQ1, has not remitted any cash other than prepayment penalties to the NIM bonds since reaching its step-down date in April 2004. The collection of prepayment penalties on the deal is expected to gradually diminish and the interest reserve, which already has a low balance, may eventually be depleted, the rating agency said.