Servicing

Six classes in Peachtree Franchise Loan LLC 1999-A have been downgraded by Fitch Ratings.The downgrades were as follows: classes A and A-X, from AAA to A; class B, from AA to BBB; class C, from BBB-minus to B; class D, from B to CCC; and class E, from CCC to CC. All the classes were removed from Rating Watch Negative. The rating agency said $15 million of the $25 million in cumulative defaults in the deal is due to a single large borrower, Westwind ALWA. "The Westwind loan was restructured in September 2001, resulting in a $6.2 million writedown to the trust," Fitch said. "The loan was returned to default status in September 2002, and it is expected that the remaining $8.3 million will be completely written down." Fitch can be found online at http://www.fitchratings.com.

Associates First Capital Corp., New York, has announced a cash tender offer for all the outstanding original principal amount (approximately $2.02 billion) of the class A certificates of Associates Manufactured Housing Contract Trust 1999-1.Associates said validly tendered certificates will be purchased at a price of $1,004.80 (per $1,000 original principal amount) multiplied by 0.5438581, the principal balance factor as of Jan. 15, 2003, plus accrued and unpaid interest up to the settlement date. Salomon Smith Barney is the dealer/manager of the offering, and Mellon Investor Services is the depositary and the information agent. The offer is scheduled to expire at 11:59 p.m. Eastern Time on Feb. 10.

Seven classes of Structured Asset Securities Corp. mortgage pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: SASCO 1996-4, class B3, from BBB to BB, and class B4, from CCC to D; SASCO 2000-3, group 1, class 1B5, from B to CCC; SASCO 2000-3, group 2, class 2B5, from B to C; SASCO 2001-2, class B5, from B to C; SASCO 2001-5, class B5, from B to CCC; and SASCO 2001-9, class B5, from B to C. In addition, class 2B4 of SASCO 2000-3, group 2, and the B4 classes of SASCO 2001-2 and SASCO 2001-9 were placed on Rating Watch Negative. Fitch attributed the actions to loss levels and "future loss expectations on the current severely delinquent loans in the pipeline" relative to the applicable credit support. Fitch can be found online at http://www.fitchratings.com.

WaMu Capital Corp., a fixed-income institutional broker-dealer and subsidiary of Seattle-based mortgage lending giant Washington Mutual Inc., has reported that it will open a New York sales office in Midtown Manhattan by the end of March.The corporation said it is opening the office to serve the high concentration of clients it has in the region and to complement its offices in Seattle and Los Angeles. Washington Mutual can be found online at http://www.wamu.com.

Household International, Prospect Heights, Ill., has reported net income of $1.6 billion ($3.22 per share) for 2002, down from $1.8 billion ($3.91 per share) in 2001.Net income totaled $338 million ($0.66 per share) in the fourth quarter, down from $533 million ($1.13 per share) a year earlier. Household said the results reflect a $240 million after-tax loss on a previously announced disposition of the assets and deposits of the company's thrift. The company also noted that it incurred a $333 million after-tax nonrecurring charge in connection with its nationwide settlement with state attorneys general and other regulators in the third quarter, which involved making restitution related to its subprime consumer lending businesses. Household can be found online at http://www.household.com.

Six classes in Peachtree Franchise Loan LLC 1999-A have been downgraded by Fitch Ratings.The downgrades were as follows: classes A and A-X, from AAA to A; class B, from AA to BBB; class C, from BBB-minus to B; class D, from B to CCC; and class E, from CCC to CC. All the classes were removed from Rating Watch Negative. The rating agency said $15 million of the $25 million in cumulative defaults in the deal is due to a single large borrower, Westwind ALWA. "The Westwind loan was restructured in September 2001, resulting in a $6.2 million writedown to the trust," Fitch said. "The loan was returned to default status in September 2002, and it is expected that the remaining $8.3 million will be completely written down." Fitch can be found online at http://www.fitchratings.com.

Fidelity National Financial Inc., Irvine, Calif., has acquired certain assets of Bankers Insurance Group, including the rights to issue new and renewal flood insurance policies underwritten by Bankers Insurance and its subsidiaries.The terms of the deal were not disclosed. As part of the transaction, FNF also acquired FCIC, an insurance carrier licensed in 50 states, to act as the underwriter for the policies. FNF said the deal involved more than 360,000 flood insurance policies originated through a nationwide network of 10,000 independent agents in conjunction with the National Flood Insurance Program. FNF, a provider of title insurance and real-estate-related products and services, can be found online at http://www.fnf.com.

Employment in the mortgage industry rose 1.7% in December to a new record as lenders continue struggling to process refinancing and home purchase applications.While employment in the U.S. dropped by 101,000 last month, the U.S. Bureau of Labor Statistics reported that jobs in the mortgage banker/broker sector increased from 401,600 in November to 408,400 in December. Mortgage lenders added 56,300 new hires to their payrolls in 2002 -- a 16% increase. Meanwhile, the BLS reported that the U.S. unemployment rate remained stuck at 6% and that the loss of jobs in November was 88,000 -- more than double the preliminary estimate made last month. Despite this dismal jobs report, James Smith, chief economist for the Society of Industrial and Office Realtors, said he expects strong economic growth in 2003 and continued demand for refinancings. "If productivity growth stays strong … interest rates will stay low," he said at a news briefing. The BLS can be found online at http://stats.bls.gov.

Doral Financial Corp., San Juan, Puerto Rico, has announced that its common stock has begun trading on the New York Stock Exchange under the ticker symbol DRL.Doral is the largest residential mortgage lender in Puerto Rico and has banking operations in the United States as well.

Four classes of ContiMortgage Corp. home equity loan pass-through certificates have been downgraded by Fitch Ratings and two other classes were placed on Rating Watch Negative.In addition, the ratings on more than 50 classes were affirmed. The downgrades were as follows: class B of Conti 1997-5 and class B-1 of Conti 1998-3, pool 1, from BBB to BBB-minus; and the B classes of Conti 1999-1 and Conti 1999-3, from BBB to BB. Class B-1A of Conti 1997-2, group 2, was placed on Rating Watch Negative, and the B classes of both pools of Conti 1998-1 were removed from Rating Watch Negative. The actions were attributed to loss levels and high delinquencies relative to applicable credit support. Fitch noted that ContiMortgage's loan servicing platform was acquired by Fairbanks Capital Corp. in 2001. The rating agency can be found online at http://www.fitchratings.com.