Servicing

Fannie Mae has priced a $5.0 billion cash offering of two-year Benchmark Notes and a $4.0 billioncash offering of seven-year Benchmark Notes. The two-year, 6.375% notes (CUSIP31359MGG2), priced at 99.873, yield 6.443% at a spread of 53 basis points over the 5.913% Treasury due in September2002. The seven-year, 6.625% notes (CUSIP 31359MGH0), priced at 99.442, yield 6.726% at a spread of 94.5 bp overthe 6.75% Treasury due in May 2005. The joint lead managers for both issues are Goldman, Sachs & Co., J.P.Morgan Securities Inc., and Lehman Brothers Inc. Fannie Mae's website address is http://www.fanniemae.com.

Theoretics Inc., a privately held developer of risk management systems for fixed-income products and derivatives,has reached strategic licensing agreements with a number of new customers, including GMAC Mortgage. The Park City, Utah-based company said it also has licensing agreements involving its Telemark Risk ManagementSystem with SunTrust, Zurich Capital Markets, and the Federal Home Loan Bank of Boston. The new online versionof the company's system allows managers to track their portfolios from any location with Internet access. Theoreticsis offering free trial use of the online version of its technology. The Telemark system is generally leased fora per-month charge. It offers fixed-income coverage that includes bonds, mortgages, structured swaps, caps andfloors, swaptions, currencies, and synthetic option replication. The company's website address is http://www.theoretics.com.

The servicer ratings of Crown Northcorp have been placed on Rating Watch Negative by Fitch. The company has a master servicer rating of CMS3, a primary servicer rating of CPS2, and a special servicerrating of CSS2. (Fitch rates servicers on a scale of 1 to 5, with 1 being the highest rating.) "This decisionfollows disclosure of financial weaknesses that have led to a significant reduction in staff and affected the uncertaintyas to the future of the company," the rating agency said. Crown Northcorp does not service any commercialmortgage-backed securities deals currently rated by Fitch. Fitch's website address is http://www.fitchratings.com.

American Business Financial Services Inc., Bala Cynwyd, Pa., has closed a $150 million fixed-ratemortgage loan securitization via three subsidiaries. ABFS Mortgage Loan Trust2000-3 consists of Class A-1 notes carrying a coupon of 7.61%. Prudential Securities was the sole manager of thedeal. The company's three subsidiaries are American Business Credit Inc., Upland Mortgage, and New Jersey Mortgageand Investment Corp. ABFS's website address is http://www.abfsonline.com.

United Financial Inc., Denver, is brokering the sale of servicing rights on a portfolio of $52 millionof home loans from Illinois. Federal Housing Administration loans represent 86%of the portfolio. The average loan size is $69,100 and the weighted average interest rate is 8.52%. The weightedaverage age of the loans is 107.4 months. Bids are due Oct. 11.

Fiserv Inc., Brookfield, Wis., has announced the acquisition of National Flood Services Inc., Kalispell,Mont., a provider of flood policy administration services to the insurance industry. Theterms of the deal were not disclosed. NFS is a third-party administrator for companies participating in the NationalFlood Insurance Program. Fiserv is a provider of information technology to the financial industry. Its websiteaddress is http://www.fiserv.com.

Eleven classes of securities in United Companies Financial Corp.'s manufactured housing deals have been downgraded by Fitch, and eight classes have been moved to Rating Watch Negative from Rating Watch Evolving. The rating agency noted that UCFC, which filed for Chapter 11 bankruptcy protection in March 1999, recently announced that it would sell its home equity whole loan portfolio, residual interests, and servicing rights to EMC Mortgage Corp. But Fitch said it is unaware of any plan to transfer the servicing of the eight securitized MH pools, which "have displayed a relatively high level of delinquencies and repossessions." The MH downgrades were: Class B-1 of Series 1996-1, from BBB to BB-minus, and Class B-2, from B to CCC; Class A of Series 1997-RS1, from BB-minus to B; Class B-1 of Series 1997-1, from BB to B, and Class B-2, from CCC to D; Class B-1 of Series 1997-2, from BBB to BB, and Class B-2, from CCC to D; Class B-1 of Series 1997-3, from BBB to BB, and Class B-2 from CCC to D; Class B-1 of Series 1997-4, from BBB to BB; Class B-1 of Series 1998-1, from BBB to BB; and Class B-2 of Series 1998-2, from BB to B. Except for Class B-1 of Series 1996-1 and the B-2 classes of Series 1997-1, 1997-2, and 1997-3, the above securities remain on Rating Watch Negative.

Southern Pacific Funding Corp., Lake Oswego, Ore., has obtained a temporary restraining order in a lawsuit filed Wednesday against Wilshire Real Estate Partnership, SPFC has announced.SPFC also said it is engaged in discussions with its warehouse lenders with regard to notices of default involving certain loan covenants. The warehouse lines of credit, which total $1.3 billion, are used by SPFC to fund loan originations and purchases. The litigation results from claims that SPFC is in default with respect to a $40 million loan recently made by Wilshire that is secured by assets with a market value substantially in excess of the loan amount, SPFC said. The temporary restraining order enjoins Wilshire from selling the loan collateral without complying with requirements of the Uniform Commercial Code.

FirstPlus Financial Group Inc., Dallas, has announced that it "remains strongly engaged in finding a suitable strategic partner" and that discussions with more than one party are under way.The announcement came after a selloff of FirstPlus shares Monday and Tuesday morning in the wake of a report in National Mortgage News that General Electric Capital Corp., Stamford, Conn., had considered but decided against buying FirstPlus, the nation's largest high-LTV originator/servicer. "There has been much speculation about our efforts, but we have made significant progress and we hope to resolve the matter in the next few weeks," said Daniel T. Phillips, chairman and chief executive officer of FirstPlus. Mr. Phillips said the company is attractive to prospective buyers because of its retail capability. "In the consolidating financial services industry, companies are looking for this platform as a way to sell products and cross-sell their own," he said.

Western Financial Bank, Irvine, Calif., has signed a letter of intent to sell substantially all its mortgage servicing rights, which will result in an after-tax writedown of approximately $2.3 million and contribute to a previously announced third-quarter loss, according to Westcorp, the bank's parent.The sale is pending the negotiation of a definitive agreement and related approvals. Western Financial will continue to originate prime and subprime mortgages for sale through established secondary market sources, Westcorp said. Westcorp's website address is http://www.westernfinancial.com.