PHH Mortgage Services Corp Pass-Thrus Upgraded by Fitch IBCA

Business Wire, August 23, 1999

NEW YORK--(BUSINESS WIRE)--Aug. 23, 1999--

Fitch IBCA upgrades PHH Mortgage Services Corp.'s mortgage pass-through certificates:

-- Series 1995-7 class B1 ($2,323,062 outstanding), to `AAA' from `AA', class B2 ($929,225 outstanding) to 'AAA' from `A', class B3 ($929,225 outstanding) to `AA' from `BBB', class B4 ($464,613 outstanding) to `A+` from `BB', and class B5 ($371,690 outstanding) to `BBB+' from `B'.

-- Series 1996-1 class B1 ($2,383,350 outstanding), to `AAA' from `AA', class B2 ($1,191,675 outstanding) to 'AA+' from `A', class B3 ($953,340 outstanding) to `A+' from `BBB', class B4 ($476,670 outstanding) to `BBB+` from `BB', and class B5 ($47,667 outstanding) to `BBB+' from `B'.

-- Series 1996-3 class B1 ($2,938,121 outstanding), to `AAA' from `AA', class B2 ($1,469,060 outstanding) to 'AA+' from `A', class B3 ($1,175,248 outstanding) to `A' from `BBB', and class B4 ($411,336 outstanding) to `BBB+` from `BB'.

-- Series 1996-4 class B1 ($2,642,031 outstanding), to `AAA' from `AA', class B2 ($1,200,923 outstanding) to 'AA+' from `A', class B3 ($720,554 outstanding) to `AA' from `BBB', class B4 ($384,296 outstanding) to `A` from `BB', and class B5 ($144,111 outstanding) to `A-' from `B'.

-- Series 1996-5 class B1 ($2,591,077 outstanding), to `AAA' from `AA', class B2 ($1,177,762 outstanding) to 'AAA' from `A', class B3 ($706,658 outstanding) to `AA+' from `BBB', class B4 ($376,884 outstanding) to `A+` from `BB', and class B5 ($141,331 outstanding) to `A' from `B'.

-- Series 1996-6 class B1 ($2,741,258 outstanding), to `AAA' from `AA', class B2 ($1,522,921 outstanding) to 'AAA' from `A', class B3 ($913,753 outstanding) to `AA' from `BBB', class B4 ($487,335 outstanding) to `A` from `BB', and class B5 ($304,585 outstanding) to `BBB' from `B'.

-- Series 1996-7 class B1 ($2,679,096 outstanding), to `AAA' from `AA', class B2 ($1,190,709 outstanding) to 'AAA' from `A', class B3 ($893,032 outstanding) to `AA' from `BBB', class B4 ($476,284 outstanding) to `A` from `BB', and class B5 ($297,677 outstanding) to `BBB' from `B'.

-- Series 1997-4 class B1 ($3,016,506 outstanding), to `AAA' from `AA', class B2 ($2,011,005 outstanding) to 'AA' from `A', class B3 ($1,206,603 outstanding) to `A' from `BBB', class B4 ($703,852 outstanding) to `BBB` from `BB', and class B5 ($402,201 outstanding) to `BB' from `B'.

These actions are a result of low delinquencies and losses, as well as increased credit support. As of the July distribution reports, the credit enhancements are as follows:

-- For series 1995-7, class B1 has 9.44% (3.75% original), class B2 has 6.92% (2.75% original), class B3 has 4.40% (1.75% original), class B4 has 3.15% (1.25 % original), and class B5 has 2.14% (0.85% original).

-- For series 1996-1, class B1 has 7.97% (3.75% original), class B2 has 5.31% (2.50% original), class B3 has 3.19% (1.50% original), class B4 has 2.12% (1.00 % original), and class B5 has 2.02% (0.95% original).

-- For series 1996-3, class B1 has 6.89% (3.50% original), class B2 has 4.43% (2.25% original), class B3 has 2.46% (1.25% original), and class B4 has 1.77% (0.90 % original).

-- For series 1996-4, class B1 has 8.36% (3.25% original), class B2 has 5.15% (2.00% original), class B3 has 3.22% (1.25% original), class B4 has 2.19% (0.85 % original), and class B5 has 1.80% (0.70% original).

-- For series 1996-5, class B1 has 11.15% (3.25% original), class B2 has 6.86% (2.00% original), class B3 has 4.29% (1.25% original), class B4 has 2.92% (0.85 % original), and class B5 has 2.40% (0.70% original).

-- For series 1996-6, class B1 has 9.92% (3.25% original), class B2 has 5.97% (2.00% original), class B3 has 3.59% (1.25% original), class B4 has 2.33% (0.85 % original), and class B5 has 1.54% (0.60% original).

-- For series 1996-7, class B1 has 8.61% (3.00% original), class B2 has 5.74% (2.00% original), class B3 has 3.59% (1.25% original), class B4 has 2.44% (0.85 % original), and class B5 has 1.72% (0.60% original).

-- For series 1997-4, class B1 has 4.87% (2.51% original), class B2 has 2.92% (1.50% original), class B3 has 1.75% (0.90% original), class B4 has 1.07% (0.55 % original), and class B5 has 0.68% (0.35% original).

Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch IBCA web site at `www.fitchibca.com'.