Fitch Assigns M&T Mortgage Corp. 'RPS2' Resi Servicer Rating

Business Wire, August 20, 2004

NEW YORK -- Fitch Ratings assigns M&T Mortgage Corporation (M&T) its 'RPS2' residential primary servicer rating for prime product. The rating is based on M&T's solid financial condition, seasoned executive and servicing management team and proven loan administration procedures. The rating also reflects the company's creditable default management practices and effective internal control environment.

Headquartered in Buffalo, NY, M&T is a wholly owned subsidiary of M&T Bank Corporation, which is a New York state chartered bank holding company, and a subsidiary of Manufacturers and Traders Trust Company. M&T Bank Corporation is the fourth largest bank holding company in New York and operates over 700 branches throughout New York and nearby states. Through a number of mergers and acquisitions over the past five years M&T Bank Corporation has grown to over $52 billion in assets. Both M&T Bank Corporation and Manufacturers and Traders Trust Company are rated 'A-' for long-term debt by Fitch.

M&T Mortgage Corporation's servicing platform has developed expertise in servicing prime conforming loans, GNMA Early Buyouts, SONYMA loans and Alt-A loans over its twelve years of operation. M&T serviced approximately 173,000 loans totaling $14.6 billion as of March 31, 2004. The servicing portfolio by loan volume consists of approximately 40% agency loans, 21% private residential mortgage backed securitizations (RMBS), 16% owned, 11% SONYMA, 9% GNMA, and 3% other loans. Roughly 72.5% of the portfolio is comprised of prime conforming conventional loans, with Alt-A loans representing 15% and FHA and VA loans representing 12.5%.

Fitch's review confirmed that M&T has developed a competent and effective servicing platform through the guidance of a seasoned management team, reliable technology, and sound servicing practices. In addition, M&T has earned top servicer ratings from Fannie Mae and Freddie Mac for the past three years. Fitch will continue to monitor M&T's effectiveness in managing loan performance and portfolio growth initiatives.

Fitch Ratings rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus ( ) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'Residential Mortgage Servicer Ratings', dated February 21, 2003, which is available on Fitch's web site at 'www.fitchratings.com'.