Fitch Issues Originator/Issuer Review on GreenPoint Mortgage Funding

Business Wire, Jan 30, 2004

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 30, 2004

As part of its originator/issuer operational review program, Fitch Ratings has issued a report on the prime, Alt-A, and HE/HELOC originator/issuer operations of GreenPoint Mortgage Funding, Inc (GPM) on Jan. 30, 2004, available on the Fitch Ratings web site at 'www.fitchratings.com'. Fitch's review confirmed that GPM has a diversified wholesale broker network, a well established appraisal review process, the ability to quickly roll out new products to the market, and benefits from the financial strength of its parent companies.

Headquartered in Novato, CA, GPM is a wholly-owned subsidiary of GreenPoint Bank, which is in turn a wholly owned subsidiary of GreenPoint Financial Corp. (GPT). Fitch rates GPT's senior debt 'BBB'. Since 1995, GPM has generated a significant portion of its total production through its broad and diversified wholesale broker network. GPM, with production of approximately $39 billion in 2003, originated 80% of its production through its wholesale channel, 4% through retail, and 16% through correspondent.

GPM's management views the company's practice of generating a significant portion of its production through credit and pricing exceptions to be in alignment with its core business strategy. GPM expects to expand its niche product offerings and has focused on market share growth as a key initiative for 2004. GPM and GPT continue to explore and to pursue initiatives related to the outsourcing of technology functions to India. Fitch will continue to monitor GPM's loan performance while the company pursues its technology, product expansion, and market share initiatives.

Fitch's originator/issuer review program was developed to obtain an in depth understanding of originators/issuers in today's environment, to enhance transaction analysis, and to provide additional information to investors and other market participants. The review performed by the operational risk group focuses on effective lending and sourcing practices, underwriting integrity, and quality control and risk management. The evaluation includes an in-depth analysis of processes, verification of effectiveness of controls, and a targeted review of loans originated or purchased.

This extension of Fitch's detailed loan and pool level analysis provides a qualitative indication of risk in RMBS transactions attributable to an originator/issuer's level of risk management and disclosure. The reviews are performed in the context of the criteria set forth in Fitch Research on 'Reviewing Residential Mortgage Originators', dated July 23, 2001 and also available at 'www.fitchratings.com', along with information about other originators/issuers that Fitch has reviewed.