Servicing

Countrywide Financial Corp., Calabasas, Calif., has announced that its long-time independent auditor, Grant Thornton LLP, has been replaced by KPMG LLP, but that the move was not based on any dispute with Grant Thornton over accounting principles or practices.Countrywide praised Grant Thornton, which has been the company's independent auditor since the early 1970s, adding that the company would complete Countrywide's 2003 audit. The appointment of KPMG was made by the Audit and Ethics Committee of Countrywide's board of directors based on a comprehensive review of audit firms that began in mid-2003, the company said.

The issuance of U.S. private-label residential mortgage-backed securities will most likely decline by 30% in 2004, a percentage "far less" than the decrease projected for new residential mortgage volumes this year, Standard & Poor's has reported.RMBS issuance will most likely fall to $400 billion this year from the record-breaking $575 billion in 2003, the rating agency said. S&P can be found online at http://www.standardandpoors.com.

American Business Financial Services Inc., Philadelphia, has announced the extension of an investment note exchange offer through Feb. 6 due to the response to the offer and the processing volume experienced over the holiday season.ABFS said $74.6 million of the investment notes were exchanged for $35.3 million of senior collateralized subordinated notes and 39.3 million shares of series A convertible preferred stock through Dec. 31. The offer, as extended, allows eligible noteholders to exchange the principal amount of their investment note in increments of $1,000 for equal amounts of: a senior collateralized note with the same maturity date and an interest rate of 10 basis points higher than their existing note; or shares of series A preferred stock with a liquidation value of $1 per share, with an option to convert the shares into common stock beginning 24 months after the issuance date. The company can be found online at http://www.abfsonline.com.

Countrywide Financial Corp., Calabasas, Calif., has announced the promotion of Stanford L. Kurland to the position of CFC president.Mr. Kurland, who will retain the title of chief operating officer of CFC, had been serving as executive managing director of CFC and president of its subsidiary Countrywide Home Loans. David Sambol has been named president and chief operating officer of CHL. He will continue as executive managing director of mortgage banking and capital markets for CFC. In his role as president of CFC, Mr. Kurland will lead the development and execution of the company's strategic plans and will direct all corporate and subsidiary operations. He will also oversee the company's asset/liability and investment, hedging, and interest rate risk-management activities. Mr. Sambol is now responsible for Countrywide's domestic and international mortgage lending and servicing activities.

American Business Financial Services Inc., Philadelphia, has announced the election of four individuals to its board of directors, and stockholder approval of proposals dramatically increasing the number of authorized shares of common and preferred stock.Those elected to three-year terms on the board are as follows: Michael R. DeLuca, an 11-year veteran of the board; and Warren E. Palitz and Jeffrey S. Steinberg, who were named to the board in February. Harold E. Sussman, another 11-year board veteran, was elected to a one-year term. The proposals approved by stockholders included an increase in authorized common shares from 9 million to 209 million and an increase in authorized preferred shares from 3 million to 203 million. The company can be found on the Web at http://www.abfsonline.com.

Annaly Mortgage Management Inc., New York, has announced a merger agreement to acquire Fixed Income Discount Advisory Co., an affiliated investment adviser, for stock valued at $40.5 million to $90.0 million, depending on FIDAC's future revenues and pretax profits.Annaly said the New York-based FIDAC is a fee-based asset management business that managed, assisted in managing, or supervised approximately $13.1 billion in gross assets as of Sept. 30. Under the merger pact -- which provides for the merger of FIDAC into a newly formed Annaly subsidiary -- Annaly would issue common stock worth $40.5 million (as of Dec. 31) upon the consummation of the merger and would pay up to $49.5 million in additional common shares to FIDAC stockholders if FIDAC meets certain revenue and pretax profit targets over the next three years. Annaly, a mortgage real estate investment trust, can be found on the Internet at http://www.annaly.com.

Fitch Ratings has raised the residential primary servicer rating of CitiFinancial Mortgage Co., Dallas, from RPS3-plus to RPS2 for subprime loans.The upgrade was based on CFMC's "experienced management team, reliable loan administration processing and controls, effective default management strategies, and continued success in managing and resolving its delinquent portfolio," Fitch said. The rating agency also cited the financial strength of CFMC's parent, Citigroup, which is rated AA-plus by Fitch.

The residential master servicer rating of CitiMortgage Inc., St. Louis, has been raised by Fitch Ratings from RMS2-plus to RMS1-minus for prime loans.The rating agency also affirmed CitiMortgage's residential primary servicer rating at RPS1. Fitch said the upgrade of the master servicer rating was based on CitiMortgage's "continued effective performance in managing its $10 billion master servicing portfolio" and the "numerous efficiencies and enhanced reporting capabilities" created since the company completed its acquisition of First Nationwide Mortgage Corp.'s master servicing platform in November 2002. Fitch rates residential servicers on a scale of 1 to 5, with 1 being the highest rating. The rating agency can be found online at http://www.fitchratings.com.

A stock index of multifamily companies has hit a record high and outperformed the Standard & Poor's 500 stock index in 2003, according to the National Association of Home Builders.The NAHB-created multifamily stock index showed a gain of 20%, compared with a 15% gain by the S&P 500 (with dividends reinvested). "Investors are looking at multifamily companies as good, long-term investments and, despite some weakness in the rental market over the past two years, these stocks continue to perform well," said NAHB economist Elliot Eisenberg. The NAHB stock index includes 24 real estate investment trusts and four other publicly traded companies that derive 50% of their revenues from rental properties. Mr. Eisenberg created the index two years ago. The NAHB can be found online at http://www.nahb.com.

Freddie Mac has announced the deadlines for submitting stockholder proposals and director nominations to be included in the proxy statement for its annual stockholders' meeting and for qualifying to introduce proposals and nominations from the floor.To be considered for inclusion in the proxy statement, stockholder proposals must be submitted in writing to Freddie Mac and received by Jan. 30, the government-sponsored enterprise said. The deadline for receipt of written proposals and nominations to be introduced from the floor is Feb. 8. Freddie Mac said it expects to provide an annual report for 2002 at the stockholders' meeting, which it said will be held in the first quarter. Submissions should be sent to Corporate Secretary, Freddie Mac, 8200 Jones Branch Drive MS 200, McLean, Va. 22102. Procedural requirements for submissions can be found on Freddie Mac's website at http://www.freddiemac.com.