Fitch Rates Washington Mutual MSC Mtge P-T Ctfs Series 2003-MS5

Business Wire, Feb 28, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 28, 2003

Washington Mutual Mortgage Securities Corp.'s mortgage pass-through certificates, series 2003-MS5 classes I-A-1 through I-A-6, II-A, III-A, C-X, C-P and R ($833.3 million) senior certificates, are rated 'AAA' by Fitch.

The 'AAA' rating on the senior certificates reflects the 1.20% subordination provided by the 0.60% class C-B-1, 0.25% class C-B-2, 0.10% class C-B-3 and 0.25% provided by classes C-B-4, C-B-5, and C-B-6.

Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral and the strength of the legal and financial structures, and Washington Mutual Mortgage Securities Corp.'s servicing capabilities as master servicer. Fitch currently rates Washington Mutual Bank, FA a 'RMS2' for Master Servicing.

The assets of the trust will consist of 3 pools of 15 year fixed rate loans that are cross-collateralized. The Group I loans consists of 1,498 conventional, fully amortizing 15-year fixed-rate, mortgage loans secured by first liens on one- to four-family residential properties with an aggregate original principal balance of $724,385,215. The average unpaid principal balance as of the cut-off date is $483,568. The weighted average original loan-to-value ratio (LTV) is 57.4%. Cash-out refinance loans represent 19.90% of the loan pool. Approximately 69.36% and 3.88% of the mortgage loans possess FICO Scores greater than or equal to 720 and less than 660, respectively. The three states that represent the largest portion of the mortgage loans are California (39.99%), Illinois (6.86%), and Washington (5.19%). Approximately 1.41% of the mortgage loans are secured by properties located in the State of Georgia, all of which are not covered under the Georgia Fair Lending Act (GFLA), effective as of October 2002. For additional information on GFLA, please see the press release issued December 24, 2002 titled 'Fitch Ratings Comments on Recent Predatory Lending Legislation' at 'www.fitchratings.com'.

The Group II loans consists of 189 conventional, fully amortizing 15-year fixed-rate, mortgage loans secured by first liens on one- to four-family residential properties with an aggregate original principal balance of $93,839,658. The average unpaid principal balance as of the cut-off date is $496,506. The weighted average original loan-to-value ratio (LTV) is 54.7%. Cash-out refinance loans represent 16.57% of the loan pool. Approximately 65.55% and 2.65% of the mortgage loans possess FICO Scores greater than or equal to 720 and less than 660, respectively. The state of California represents 100.00% of the mortgage loans.

The Group III loans consists of 56 conventional, fully amortizing 15-year fixed-rate, mortgage loans secured by first liens on one- to four-family residential properties with an aggregate original principal balance of $25,206,096. The average unpaid principal balance as of the cut-off date is $450,109. The weighted average original loan-to-value ratio (LTV) is 55.0%. Cash-out refinance loans represent 27.12% of the loan pool. Approximately 67.17% and 4.85% of the mortgage loans possess FICO Scores greater than or equal to 720 and less than 660, respectively. The three states that represent the largest portion of the mortgage loans are California (29.00%), Illinois (14.42%), and New York (8.43%).

The mortgage loans deposited into the Washington Mutual MSC Mortgage Pass-Through Certificates Series 2003-MS5 Trust were purchased by Washington Mutual Mortgage Securities Corp. directly or indirectly from affiliated or unaffiliated third parties (such as Washington Mutual Bank, FA) who either originated the applicable mortgage loans or purchased the mortgage loans through correspondent or broker lending programs operated by such third parties.

The certificates are issued pursuant to a pooling and servicing agreement dated February 1, 2003 among Washington Mutual Mortgage Securities Corp., as depositor and master servicer and U.S. Bank National Associate, as trustee. For federal income tax purposes, an election will be made to treat the trust fund as two Real Estate Investment Conduits (REMICs).