Although mutual fund fees have come under heavy scrutiny from Wall Street's favorite Attorney General, it is unlikely to have a negative impact on the credit quality of any outstanding transactions, sources said. New supply, however, may become sparse, after seemingly reinventing itself at the start of 2003. At the very least, one of the remaining two issuers will not likely be securitizing its 12b-1 fees going forward.

In a worst-case scenario, if too many retail investors opt out of their mutual funds, early paydown triggers may be tripped, but ABS investors would still be made whole.

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