Moody's Eyes NatCity's Servicer Rating

The SQ2-plus servicer quality rating of National City Bank as a primary servicer of second-lien loans has been placed on review for possible downgrade by Moody's Investors Service. The rating agency said the action was prompted by the "high level of volatility" in the mortgage market and a recent Moody's action placing the long-term ratings of the bank's parent company, National City Corp., under review for possible downgrade. Moody's said National City has largely maintained its servicing performance, but that the deterioration in the mortgage market and the slowdown in origination volume have the potential to "moderately" affect the investment and resource levels in the company's servicing platform. Servicing is performed by National City Lending Services, a division of National City Bank. The rating agency can be found on the Web at http://www.moodys.com.