Fitch Rates Washington Mutual MSC Mtge P-Ts Ser 2003-MS2

Business Wire, Jan 30, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 30, 2003

Washington Mutual Mortgage Securities Corp.'s mortgage pass-through certificates, series 2003-MS2 classes I-A-1, I-A-2, II-A-1, III-A-1 through III-A-6, IV-A-1 through IV-A-8, V-A-1, A-X, II-X, III-X, V-X, A-P, II-P, III-P, V-P, and R ($980.9 million) senior certificates, are rated 'AAA' by Fitch Ratings. In addition, class C-B-1 ($8.5 million) is rated 'AA', class C-B-2 ($3.5 million) is rated 'A', and class C-B-3 ($2.5 million) is rated 'BBB' by Fitch. Classes C-B-4, C-B-5, and C-B-6 are being offered privately.

The 'AAA' rating on the senior certificates reflects the 1.85% subordination provided by the 0.85% class C-B-1, 0.35% class C-B-2, 0.25% class C-B-3 and 0.40% 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 5 pools of 15 and 30 year fixed rate loans that are cross-collateralized. The Group I loans consists of 55 conventional, fully amortizing 30-year fixed-rate, mortgage loans secured by first liens on one to four-family residential properties with an aggregate original principal balance of $21,225,655. The average unpaid principal balance as of the cut-off date is $385,921. The weighted average original loan-to-value ratio (LTV) is 71.40%. Cash-out refinance loans represent 24.77% of the loan pool. Approximately 55.78% and 4.57% 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 (26.84%), Oregon (17.13%) and Florida (16.87%). Approximately 7.08% of the mortgage loans are secured by properties located in the State of Georgia, and 0.8% of the mortgage loans are covered under the Georgia Fair Lending Act (GFLA), effective as of October 2002. Of the mortgage loans covered under GFLA, 100% is refinancing. For additional information on GFLA, please see the press release issued Dec. 24, 2002 titled 'Fitch Ratings Comments on Recent Predatory Lending Legislation' at 'www.fitchratings.com'.

The Group II loans consists of 279 conventional, fully amortizing 30-year fixed-rate, mortgage loans secured by first liens on one to four-family residential properties with an aggregate original principal balance of $129,159,138. The average unpaid principal balance as of the cut-off date is $462,936. The weighted average original loan-to-value ratio (LTV) is 67.0%. Cash-out refinance loans represent 11.47% of the loan pool. Approximately 66.84% and 8.99% of the mortgage loans possess FICO Scores greater than or equal to 720 and less than 660, respectively. All loans from this group are located in California.

The Group III loans consists of 1,283 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 $606,071,994. The average unpaid principal balance as of the cut-off date is $472,387. The weighted average original loan-to-value ratio (LTV) is 58.60%. Cash-out refinance loans represent 19.37% of the loan pool. Approximately 71.53% and 4.24% 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 (39.91%), Illinois (8.48%) and Washington (5.07%). Approximately 1.48% of the mortgage loans are secured by properties located in the State of Georgia, none of which are covered under the Georgia Fair Lending Act (GFLA), effective as of October 2002.

The Group IV loans consists of 481 conventional, fully amortizing 30-year fixed-rate, mortgage loans secured by first liens on one to four-family residential properties with an aggregate original principal balance of $221,744,350. The average unpaid principal balance as of the cut-off date is $461,007. The weighted average original loan-to-value ratio (LTV) is 67.00%. Cash-out refinance loans represent 31.48% of the loan pool. Approximately 62.29% and 5.85% 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 (49.52%), New York (6.84%) and Massachusetts (6.22%). Approximately 1.32% of the mortgage loans are secured by properties located in the State of Georgia, none of which are covered under the Georgia Fair Lending Act (GFLA), effective as of October 2002.

The Group V loans consists of 103 conventional, fully amortizing 30-year fixed-rate, mortgage loans secured by first liens on one to four-family residential properties with an aggregate original principal balance of $21,287,282. The average unpaid principal balance as of the cut-off date is $206,673. The weighted average original loan-to-value ratio (LTV) is 69.2%. Cash-out refinance loans represent 37.10% of the loan pool. Approximately 42.01% and 4.71% 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 (35.00%), New York (15.60%) and Florida (6.71%). Approximately 2.90% of the mortgage loans are secured by properties located in the State of Georgia, and 2.9% of the mortgage loans are covered under the Georgia Fair Lending Act (GFLA), effective as of October 2002. Of the mortgage loans covered under GFLA, 34.48% and 65.52% are purchase money and refinancing, respectively.