Thirteen classes of IndyMac Manufactured Housing Contract pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: series 1997-1, classes A-2 to A-6, from AAA to AA, and class M, from B to CCC; series 1998-1, classes A-3 to A-5, from AAA to A, and class M, from B to CCC; and series 1998-2, classes A-2 to A-4, from AAA to AA. In addition, the ratings on two classes from series 1998-2 were affirmed. Fitch attributed the downgrades to higher-than-expected losses that have led to "the complete depletion of overcollateralization" on all three transactions. The rating agency noted that IndyMac exited the manufactured housing lending business in mid-1999, although it still services its loans. "In 2001, the servicing was centralized in Pasadena in an effort to leverage the mortgage platform and improve performance," Fitch said. "However, performance has remained poor since the centralization. Additionally, the lack of dealer relationships (as a result of exiting the origination business) coupled with the oversupply of repossessed homes in the marketplace, continues to put significant pressure on recovery rates."

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