Fitch Downgrades UCFC MH Classes

Eighteen classes from eight UCFC manufactured housing transactions have been downgraded by Fitch Ratings, which cited uncertainty surrounding the servicing operation since UCFC's chapter 11 bankruptcy filing in 1999.The affected certificates were the M and B-1 classes of series 1996-1, 1997-1, 1997-2, 1997-3, 1997-4, and 1998-1 and the M-1, M-2, and B-1 classes of series 1998-2 and 1998-3. Fitch also affirmed the ratings on 15 other classes in the eight deals. The rating actions reflect the poor performance of the loans and the servicing-related uncertainty, Fitch said. The rating agency said EMC Mortgage Corp. acquired the servicing rights for UCFC's manufactured housing portfolio in 2000, but that "loss severities continue to be high" as a result of "the difficult environment in the manufactured housing industry." United Companies Financial Corp. exited the manufactured housing business in October 1998. Fitch can be found online at http://www.fitchratings.com.