Fitch Ratings affirms Cendant Mortgage Corp.'s (Cendant) residential primary servicer ratings of 'RPS1' for prime product and 'RPS1-' for home equity and home equity lines of credit (HELOC). In addition, Fitch assigns Cendant an 'RPS1' primary servicer rating for Alt-A mortgage product. The ratings reflect Cendant's seasoned corporate and servicing management teams, proficient loan administration practices, effective loan performance, enhanced training programs, and proven abilities in managing its second lien default processes. The ratings also reflect Cendant's solid reputation as a third party private label servicer and the company's proactive use of technology.

Headquartered in Mt. Laurel, N.J., Cendant Mortgage Corp. (also operating as PHH Mortgage Services) is a wholly owned subsidiary of PHH Corporation, which in turn is owned by Cendant Corporation. As of Sept. 30, 2004, Cendant serviced approximately 922,950 mortgage loans totaling $144.7 billion. Cendant's servicing portfolio is composed of the following:

-- $8.3 billion of FHA/VA product;

-- $91.6 billion of conforming conventional product;

-- $40.9 billion of prime jumbo product;

-- $1.7 billion of Alt-A product;

-- $3.5 million of subprime product;

-- $1 billion of HELOC product;

-- $10.9 million of high loan-to-value (HLTV) product;

-- $1.1 billion of CRA product;

-- Over $4 million of other portfolio products.

In addition, Cendant subserviced 54,755 loans totaling $2.6 billion in HELOC product for third parties and provided private label origination and servicing functions for approximately 30 clients

In early 2004, Cendant Corp. announced its intention to spin-off PHH Corp. from its parent in the first quarter of 2005. Cendant Mortgage is a subsidiary of PHH and will be part of the spin-off transaction. Cendant's corporate and servicing management teams have remained intact despite the announcement and it is anticipated that the company's stable management team will help streamline PHH's transition to a separate corporate entity. Fitch believes that even with the spin-off Cendant will continue to be an effective servicer of prime, Alt-A and home equity products. However, Fitch will continue to monitor Cendant's ability to maintain its performance and manage its operations as it transitions to a new corporate entity.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on the review and rating process for servicers, see Fitch Research on 'Residential Mortgage Servicer Ratings', dated Feb. 21, 2003 and available on the Fitch Ratings web site at www.fitchratings.com.