CitiFinancial Mortgage Updates Investors on IMC Servicing

Business Wire, Feb 5, 2001

Business Editors

TAMPA, Fla.--(BUSINESS WIRE)--Feb. 5, 2001

CitiFinancial Mortgage Company ("CFMC"), Servicer for the IMC Home Loan Equity Trusts (the "Trusts"), has provided to Investors the following update with regard to the calculation and reporting of unrecoverable delinquency advances.

The Servicing Agreements governing the various Trusts provide that each month the Servicer shall advance to the Trustee interest on Home Equity Loans that are delinquent (a "Delinquency Advance"). The Agreements also provide that the Servicer is not required to make a Delinquency Advance if the Servicer determines that such Delinquency Advance is not recoverable.

In accordance with the Servicing Agreements, CFMC determines whether a Delinquency Advance for a delinquent loan will be recoverable before making any such advance. Recoverability is determined by performing an equity analysis on the loan. The equity analysis begins with the estimated gross proceeds expected upon liquidation of the real property that secures the delinquent loan. This estimate is a percentage of the appraised value given to the real property at the time of origination of the loan. The percentage is based upon the historical gross liquidation proceeds of real property already liquidated. From this figure is subtracted (i) the principal balance outstanding (and the principal balance outstanding on the first mortgage if the loan in issue is secured by a second lien) and (ii) advances already made for the delinquent loan in issue. If there is any equity in the property, the Delinquency Advance is considered recoverable and the Delinquency Advance is made for the particular loan.

CFMC continues to follow this same formula used since inception of the Trusts to determine recoverability and thus, to determine whether a Delinquency Advance will be made. CFMC recently updated the analysis based upon the historical performance of the portfolio and various characteristics of the loans including, for example, lien position, appraisal values, and whether the loan is in bankruptcy or foreclosure. The estimate of gross liquidation proceeds has been revised downward to mirror actual gross liquidation proceeds as a percentage of the appraised value. The equity analysis is now conducted on all loans between 30 and 120 days delinquency. An equity analysis is performed on all loans in foreclosure and bankruptcy. This methodology is applied to all of the loans in each of the Trusts in a consistent fashion.

Last, in conducting its historical review, CFMC discovered that the services software was advancing all prior months' interest that had previously been determined to be unrecoverable when a single payment was received and applied to a loan that was more than 120 days delinquent. In other words, these prior months' Delinquency Advances were being made regardless of the fact that (i) the loan remained delinquent and (ii) the equity analysis did not show recoverability of the Delinquency Advance. This programming was corrected. Delinquency Advances for 120+ Delinquent Loans that receive a payment will not be advanced until (i) the loan is current or (ii) the Delinquency Advance is determined to be recoverable.

Citigroup (NYSE: C), the preeminent global financial services company, provides some 120 million consumers, corporations, governments and institutions in more than 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. Major brand names under Citigroup's trademark red umbrella are Citibank, CitiFinancial, Primerica, Salomon Smith Barney, and Travelers. Additional information may be found at: www.citigroup.com.