2008-11-09 21:02:59 -

- Fitch Ratings has affirmed Bayview Loan Servicing, LLC's (BLS) U.S. residential special servicer rating as follows:

--Special servicer rating at 'RSS2'.

The rating action reflects the company's ability to manage and liquidate nonperforming residential mortgage loans and real estate owned (REO) assets utilizing its strong default management expertise and advanced technology, which are integral components of special

servicing. The rating also reflects BLS' experienced management and staff and enhanced loan administration procedures and training.

Headquartered in Coral Gables, FL, BLS is the servicing arm of Bayview Asset Management, LLC. (Bayview). Bayview is a full-service real estate investment and mortgage finance company that provides a range of products and services, including residential and commercial special servicing and residential and commercial mortgage securities investing. Due to market conditions the company will increase its focus on servicing distressed residential mortgage loans.

As of July 31, 2008, BLS special-serviced 20,741 residential loans totaling more than $2.3 billion, more than Aug. 31, 2007, when it special-serviced 16,739 loans totaling $1.6 billion. BLS has offices in Miami and Pompano, FL and Dallas, TX. The company has increased its staffing to handle the higher amount of delinquent loans and is currently overstaffed in preparation to take on additional special servicing. In addition, BLS has further enhanced its REO web site.

Fitch believes that BLS has the capacity and infrastructure to maintain and increase its residential special servicing portfolio. Fitch will continue to monitor the company's performance and operational capabilities in this challenging market.

Fitch 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 'Rating U.S. Residential Mortgage Servicers', dated Nov. 29, 2006, which is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings, New York
Margaret Sweeney, +1-212-908-0712
Mary Kelsch, +1-212-908-0563
Sandro Scenga, +1-212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com