Moody's Downgrade IndyMac MH Classes

Ten classes of senior and mezzanine certificates from two IndyMac manufactured housing securitizations have been downgraded by Moody's Investors Service.The downgrades in series 1997-1 were as follows: class A-2, from Aa3 to B1; class A-3, from Aa3 to B1; class A-4, from Aa3 to B1; class A-5, from Aa3 to B1; class A-6, from Aa3 to B1; and class M, from Ba2 to C. The downgrades in series 1998-1 were as follows: class A-3, from Aa3 to B3; class A-4, from Aa3 to B3; class A-5, from Aa3 to B3; and class M, from Ba3 to C. Moody's said the downgrades stemmed from the fact that delinquencies and repossessions have remained high, leading to high cumulative losses and the depletion of overcollateralization. As in other manufactured housing securitizations, the deteriorating performance is due to "weak underwriting standards, combined with macroeconomic factors, such as high unemployment levels in the manufacturing sector where many borrowers are employed," Moody's said. The loans were originated and are being serviced by IndyMac Inc., which exited the manufactured housing sector in 1999 but continues to service the loans from its Pasadena, Calif., servicing center. Moody's can be found online at http://www.moodys.com.