Two classes of Finance America Mortgage Loan Trust series 2004-2 have been downgraded by Fitch Ratings, and two classes from series 2004-1 have been placed on Rating Watch Negative.Class M-8 of series 2004-2 was downgraded from BBB to BBB-minus, and class M-9 was downgraded from BBB-minus to BB-minus. Classes M-7 and M-8 of series 2004-1 were placed on Rating Watch Negative. In addition, Fitch upgraded one class and affirmed the ratings on 13 other classes in the two deals. Fitch attributed the downgrades to deterioration in the relationship between credit enhancement and expected losses.

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