Standard & Poor’s Ratings Services announced today that it has reviewed the New Jersey Home Ownership Security Act of 2002 that will become effective on or after November 27, 2003 (the Act). Based on its review, Standard & Poor’s has concluded that it will permit certain New Jersey loans governed by the Act and originated on or after the effective date to be included in its rated structured finance transactions.

Loans That Will Be Accepted:

Mortgage loans on properties in New Jersey not governed by the Act may be included in Standard & Poor’s structured finance transactions. Among others, these loans include reverse mortgage loans and loans on homes that are not the borrower’s principal dwelling, such as loans to finance second homes and investor properties.

For loans governed by a predatory lending statute, Standard & Poor’s evaluates the impact the statute may have on the availability of funds to pay investors of its rated securities. The Act categorizes loans as “Home Loans,” “Covered Home Loans,” and “High-Cost Home Loans” and sets forth certain practices and prohibitions in connection with these categories. Based on Standard & Poor’s stated criteria, these Home Loans will be admitted into Standard & Poor’s rated structured finance transactions, provided (i) the Home Loan is either for the purpose of purchasing a home or a rate-term refinancing; and (ii) the seller into the securitization structure provides a representation and warranty that the loans in the rated pools are not Excluded Loans (see below). Standard & Poor’s will require this representation from a creditworthy entity that can demonstrate that existing compliance procedures are effective to identify and exclude Excluded Loans under the Act (including compliance with the Act’s safe harbor provisions for the exclusion of High-Cost Loans).

Loans That Will Not Be Accepted:

For all other loan categories the Act provides the potential for assignee liability. Although damages for some of these loan categories are capped under the Act, Standard & Poor’s will not permit these loans to be included in its rated structured finance transactions.

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