Fitch Assigns CitiFinancial Mortgage Company 'RPS3+' Servicer Rating

Business Wire, August 8, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 8, 2002

Fitch Ratings assigns CitiFinancial Mortgage Company (CFMC) an 'RPS3 ' residential primary servicer rating for subprime mortgage loans. The 'RPS3 ' rating is based on CFMC's highly seasoned and capable management team, solid 'AA ' Fitch rated parent, Citigroup, and the implementation of extensive risk management and internal controls, which closely follow those seen in other Citigroup entities. In addition, the rating reflects several enhancements to the prior operation, which include wide spread systems conversion and integration that will drastically improve the servicer's ability to track, monitor, and report on processes, timelines, and performance measures. CFMC is also well into the establishment of formalized training programs for each functional area, as well as integrating individual performance standards for each group.

As of March 31, 2002 CFMC serviced over 340,000 loans for over $20 billion, which is almost entirely subprime product. CFMC, as structured today, was formed after CitiGroup merged with Associates First Capital Corp (Associates), in November 2000. CFMC is headquartered in Irving, TX, which is the Associates prior site, and Phoenix, AZ and has an approximate total of 1,432 servicing employees. The two top officers of CFMC are Harry Goff, president and Dave Lowman, chief servicing and technology officer. After the merger, CFMC began major changes to the Associates platform, which includes converting from the Associates legacy systems, providing expanded audits and controls, and putting in place other initiatives to bring uniformity to the operation. They also engaged in efforts to identify and adopt best practices between the two companies, which is continuing today.

Fitch has reviewed CFMC's operation and believes that, since the merger, CFMC has made significant progress in their efforts to establish a cohesive management team, implement best practices, and improve operations with regard to technology, training, and controls. Fitch will continue to monitor CFMC's progress in integrating these initiatives and the effect they have on the performance of the portfolio.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus ( ) and minus (-) as well as the flat rating. For more information on the review and rating process for servicers, see Fitch Research on 'Rating Residential Loan Servicers', dated Aug. 3, 1999 and available on the Fitch Ratings web site at 'www.fitchratings.com'.