S&P Raises Fund Amer Invst Corp II Rtgs;Othrs Afmd

Business Wire, July 12, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Standard & Poor's

July 12, 2002--Standard & Poor's today raised its rating on Fund America Investors Corp. II's (Fund America II) series 1993-J class M to triple-'A' from double-'A' and class B-1 to double-'A'-plus from single-'A'.

Concurrently, ratings are affirmed on the remaining classes of Fund America II's series 1993-J and 1993-A. In addition, ratings are affirmed on Fund America Investors Trust 1997-NMC1 (see list).

The raised ratings reflect the classes having current and projected credit support percentages that adequately support the newly assigned ratings. The affirmed ratings reflect the stable pool performance and loss coverage percentages that meet or exceed the levels necessary to maintain their current ratings.

Total delinquencies range from 0% to 21.21%, and cumulative losses as a percentage of original pool balances range from 0%(series 1993-J) to 2%(series 1993-A and series 1997-NMC1). The outstanding pool balances are no more than 14% of their original size.

Credit enhancement for series 1993-J is provided by subordination. Credit support for class M has grown to 44.53%, which is 3.24 times (x) the original loss coverage percentage for the new rating level. Also, credit support to class B-1 has grown to 22.39%, which is 2.18x the original loss coverage percentage for the new rating level. Credit support for series 1993-A and series 1997-NMC1 is provided by a financial guaranty insurance policy issued by MBIA Insurance Corp., which has a financial strength rating of triple-'A'.

The collateral for series 1993-J comprises first-lien, 30-year, semi-annual adjustable-rate loans. Series 1993-A comprises one- to four-family, adjustable-rate, first-lien mortgage loans. And series 1997-NMC1 comprises fixed-rate conventional mortgages, with original terms to maturity of 30 years.

RATINGS RAISED

Fund America Investors Corp. II
Series 1993-J

Class      Rating
          To      From
M         AAA     AA
B-1       AA      A

RATINGS AFFIRMED

Fund America Investors Corp. II

Series    Class            Rating
1993-A    A-1, A-2, A-3    AAA
1993-A    A-4, A-5         AAA
1993-J    A                AAA

Fund America Investors Trust 1997-NMC1

Series         Rating
1997-NMC1      AAA

Copyright 2002, Standard & Poor's Ratings Services