Ameriquest Mortgage Company Assigned `RPS3' Resi Servicer Rtg

Business Wire, Oct 31, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 31, 2000

Fitch assigns Ameriquest Mortgage Company (AMC) its `RPS3' residential primary servicer rating for subprime product. The primary servicer rating is based on the company's ability to service, collect, and liquidate subprime product. The rating reflects AMC's experienced senior management, strong staff training program, its comprehensive loan administration procedures and controls, and its capable default management strategies and procedures.

Established in 1979 as Long Beach Savings and Loan Association, Ameriquest is a non-rated, privately owned specialty finance company engaged in the business of originating, purchasing, selling and servicing subprime mortgage loans secured by one- to four- family residences. AMC's origination operations are headquartered in Orange, CA, with a current retail branch network of 195 offices covering 32 states and employing 2700 associates nationwide. As of Aug. 31, 2000, AMC's servicing operations, also located in Orange, serviced over 79,000 subprime loans, aggregating about $6.9 billion, of which approximately 72% are in private residential mortgage-backed securities.

AMC has demonstrated its commitment to develop this servicing platform by hiring experienced managers; strengthening its training, procedures, and controls; examining and revamping its operations and caseloads; and enhancing its technology platform. Fitch will continue to monitor the impact of recent and planned enhancements on operational efficiencies and consistent loan product performance. This rating also reflects AMC's general positive trends in both profitability and capitalization. However, the company has recently reported non-recurring charges, taken in the 2nd quarter 2000, which have negatively impacted earnings. Fitch will monitor the company's progress in returning to its historical levels of profitability during the next few quarters.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. For more information on the review and rating process for servicers, see Fitch's Servicer Rating Criteria research report titled `Rating Residential Loan Servicers' dated Aug. 3, 1999, available on Fitch's web site at `www.fitchratings.com'.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance markets worldwide.