Servicing

Related Capital Co. has closed a $254 million multi-investor corporate tax credit fund consisting of investments in Low Income Housing Tax Credits, according to Related Capital's New York-based parent company, CharterMac.The fund, Related Corporate Partners XXVIII LP, is the third multi-investor corporate tax credit fund closed by RCC this year and brings the total equity raised by the company to over $1.1 billion for the year, CharterMac said. The latest fund, with LIHTC equity investments in an estimated 25 properties across the country, was sold to six institutional investors. The parent company can be found online at http://www.chartermac.com.

American Residential Funding Inc., a nationwide mortgage banking and brokerage firm based in Costa Mesa, Calif., has begun trading over the counter on the Pink Sheets under the symbol ARFG.Vincent Rinehart, president and chief executive officer of AmRes, said the company's mortgage banking division will expand banking services to its own branch network, and that AmRes will roll out a wholesale loan program to other mortgage brokers in January. The company, which said it is licensed to originate loans in over 30 states, will remain a majority-owned subsidiary of Anza Capital Inc.

Class J of Credit Suisse First Boston Mortgage Securities Corp. mortgage pass-through certificates, series 1997-C1, has been downgraded from C to D by Fitch Ratings,In addition, the ratings on 10 other classes in the deal were affirmed. Fitch said the downgrade resulted from $5.2 million in losses realized after the liquidation of the Airlines Parking loan, which had been secured by an 8,400-space parking lot in Romulus, Mich. The rating agency said it does not expect the principal loss to be recovered.

Class B3 of CWMBS (Countrywide Home Loans) Inc. mortgage pass-through certificates, series 1999-13 (Alt 1999-2), has been downgraded from CCC to C by Fitch Ratings.The ratings on four other classes in the deal were affirmed. The downgrade was attributed to a $540,773 loss that "depleted class B-4's balance, leaving no credit enhancement to class B-3."

Classes A-1 and A-2 of Diversified Asset Securitization Holdings I LP have been downgraded from AA-plus to A-minus by Fitch Ratings.Fitch said DASH I is a collateralized debt obligation that was originated and managed by Asset Allocation & Management LLC, which closed Dec. 18, 1999. The portfolio backing the CDO consists of residential and commercial mortgage-backed securities, asset-backed securities, and other CDOs. The downgrades stem from collateral deterioration that has decreased overcollateralization ratios, the rating agency said. Fitch can be found online at http://www.fitchratings.com.

Nine classes from Lehman ABS Manufactured Housing Contract Trust series 2001-B have been downgraded by Standard & Poor's Ratings Services and removed from CreditWatch with negative implications.The downgrades were as follows: classes A-1 through A-6, from AAA to AA-plus; class M-1, from AA-minus to A-minus; class M-2, BBB-plus to BB; and class B-1, from BB to CCC. The downgrades were prompted by worse-than-expected performance by the underlying pool of manufactured housing contracts and the resulting decline in credit support, the rating agency said. S&P can be found online at http://www.standardandpoors.com.

Class B5 of Harborview Mortgage Loan Trust Inc. residential mortgage pass-through certificates, series 2000-1, has been placed on Rating Watch Negative by Fitch Ratings.In addition, Fitch affirmed the ratings on five other classes in the transaction. The rating agency attributed the watchlist placement to concerns about the adequacy of credit support in light of high delinquency levels.

Class B of WMC Mortgage pass-through certificates has been downgraded from BB to B by Fitch Ratings.In addition, Fitch affirmed the ratings on 15 classes from five WMC securitizations. The downgrade was attributable to worse-than-expected performance of the underlying collateral as well as diminishing credit enhancement, the rating agency said.

Four classes of BankAmerica Manufactured Housing Contract Trust securities have been downgraded by Fitch Ratings.The downgrades were as follows: series 1995-BA1, class B-1, from B to CCC; series 1997-1, class M, from CCC to C; series 1997-2, class M, from CCC to C; and series 1998-2, class B-1, from CCC to C. In addition, the ratings on 14 classes in six BankAmerica MH deals were affirmed. Fitch attributed the downgrades to higher-than-expected losses that have caused "significant" interest shortfalls. Fitch can be found online at http://www.fitchratings.com.

Mortgage loan production margins for mortgage banking companies declined by 40% in the first half of this year, according to peer group surveys conducted by the Mortgage Bankers Association and the Stratmor Group.Despite the decline, the MBA said profit margins remained respectable following the record-breaking profits of 2003. Average pretax production margins fell to 54 basis points during the first six months of the year, compared with an all-time high of 90 bps, or 0.9% of the loan balance, for all of 2003. Driving the decline was lower origination volume, which in turn resulted in higher origination costs, the MBA said. On the bright side, average servicing income was $24 per loan in the first half, a sharp improvement from an average loss per loan of $107 last year. More information about the peer group survey can be found at http://www.mbastratmor.com.