Fitch Servicer Ratings

1. Fitch Servicer Ratings Diane Pendley, CMB Managing Director The Rating Game February 16, 2006 2:00 – 3:30 P.M.

2. Fitch Ratings – Operational Risk Group: • Commercial Servicer Ratings • Residential Servicer Ratings • Residential Originator/Issuer Reviews • CDO Asset Manager Ratings • Asset Backed Seller/Servicer Ratings • Structured Finance Trustee Reviews www.fitchratings.com

3. Operational Risk Ratings • Resi & Comm Svc since 2001 • CDO AM since 2003 • Total Resi Svc Ratings - 12 • Total Comm Svc Ratings - 4 • Total CDO AM Ratings - 7 • Comm Svc since 2002 • Total Comm Svc Ratings - 6 • Resi & Comm Svc since 2002 • ABS Svc since 2003 • Total Resi Svc Ratings - 3 • Total Comm Svc Ratings - 13 • Total ABS Svc Ratings - 8 • Resi Svc since 2005 • Total Resi Svc Ratings -2 • Resi & Comm Svc since 2005 • Total Resi Svc Ratings -1 • Total Comm 1 • Comm Svc since 1992 • Resi Svc since 1997 • Resi Orig Reviews 2002 • CDO AM since 2003 • ABS S/S since 2004 • Total Resi Svc Ratings – 113 • Total Comm Svc Ratings– 66 • Total CDO AM Ratings – 25 • Total Resi Orig Reviews – 43 • Total ABS S/S Ratings - 7 • Resi & Comm Svc since 2001 • Total Resi Svc Ratings - 9 • Total Comm Svc Ratings - 8 • Resi Svc since 1998 • Total Resi Svc Ratings - 15 • Resi Svc since 2003 • Trust Manager since 2005 • Total Resi Svc Ratings - 6 • Resi Svc since 2005 • Trust Manager since 2005 • Total Resi Svc Ratings - 3 An integrated, global approach to rating/reviewing servicers, originators/issuers, trustees, CDO Asset managers, as well as the bonds provides the Investor with a rigorous and consistent analysis of the total risk in RMBS or ABS securities, regardless of the market, structure, or product (As of January 2006 www.fitchratings.com

4. Why Fitch Rates Servicers? • The process organizes and standardizes the servicer analysis Fitch incorporates into the deal rating process. • The ratings provide investors and other industry participants with a clear indication of Fitch’s opinion regarding either additional risk or the mitigation of risk attributed to the transaction due to the performance of the servicer. • The on-going monitoring of the servicer, using annual renewals, augments the deal performance analytics and remedies for problem situations. www.fitchratings.com

5. Servicer Rating Criteria • Corporate • Company and Management • Financial Condition • Corporate Governance & Compliance/Legal • Performing and Default Servicing • Staffing & Training • Technology • Internal Controls • Performing Servicing • Customer Service • Payment Processing and Cash Management • Investor Reporting and Remitting • Default Servicing • Collections and Loss Mitigation • Default Management www.fitchratings.com

6. Servicer Rating Criteria Update • Predatory Servicing Challenges: • Lawsuits/ Loss of Reputation • Loss of Fee Income • Extended Loss Mitigation/ Foreclosure Timelines • Increased default levels caused by interest rate increases/ reduce refinance volume/ slower payoffs • New Compliance Requirements • Predatory Servicing • Reg AB Reporting • Servicing Fee Income • Relief Measures / Disaster Planning www.fitchratings.com

7. Servicer Rating Scale www.fitchratings.com

8. Servicer Ratings Effect On Deals www.fitchratings.com

9. Monitoring/On-Going Surveillance • Annual servicer reviews enhance deal performance monitoring • Market notification of any material changes in servicer operations by upgrade/downgrade or by placing them on Rating Watch • If servicers ratings fall, typically below a 3- and/or are placed on Rating Watch Negative, deals may be placed on Rating Watch or downgraded • Includes close monitoring of material servicing acquisitions/transfers • Assist in identification of alternative servicers/special servicers to aid in resolving problem deals www.fitchratings.com

10. Fitch Servicer Ratings An integrated, global approach to reviewing/ rating servicers, originators, trustees, CDO asset managers, in addition to the bonds, provides the investor with a rigorous and consistent analysis of the total risk in mortgage backed or ABS securities, regardless of the market, structure, or product. www.fitchratings.com

11. US Residential Servicer Rating Team Leads Diane Pendley, CMB Managing Director (212) 908-0777 Mortgage Banking Experience – 37 Yrs Kathy Tillwitz Senior Director, Team Manager (212) 908-0239 Mortgage Banking Experience – 23 Yrs Karen Eissner Thomas Crowe Senior Director Director (917) 539-9529 (212) 908-0227 Mortgage Banking Experience – 35 Yrs Mortgage Banking Experience – 23 Yrs Stephanie Whited Nelson Valladares Director Director (562) 481-1368 (212) 908-0334 Mortgage Banking Experience – 19 Yrs Mortgage Banking Experience – 11 Yrs www.fitchratings.com