Fitch Assessing Effect of Indymac & Financial Freedom Servicing on U.S. RMBS

NEW YORK--(Business Wire)--
Fitch Ratings is not taking any immediate rating actions on
Indymac and Financial Freedom (FF) serviced U.S. RMBS transactions in
direct response to the Federal Deposit Insurance Corporation's (FDIC)
announcement that Indymac Bank FSB (Indymac Bank) was closed by the
Office of Thrift Supervision (OTS) on July 11, 2008.

Although near-term concerns exist over the potential disruption in
servicing activity as a result of the recent regulatory action and
potential sale or transfer of the mortgage servicing business, it is
unclear at this time, whether, and to what extent, the long-term
performance of the RMBS transactions may be affected. In Fitch's
discussions with the FDIC and the Bank, the FDIC indicated that there
have not been, nor did they expect there will be, any major near-term
staffing or policy changes regarding the servicing practices for
securitized transactions. Additionally, the FDIC can exercise broad
powers in its conservator role in operating the new bank entity and
its related mortgage servicing operations. Fitch will evaluate any
significant changes to servicing policies and priorities regarding,
for example, loan modifications, interest advancing on delinquent
loans, foreclosure timelines, etc., to gauge potential credit
implications on each transaction's current and projected loan
portfolio performance, capital structure and available credit
enhancement levels.

Fitch has ratings on approximately $21 billion of outstanding
Indymac-issued RMBS transactions. About half of that amount was on
Rating Watch Negative prior to the regulatory action primarily because
of deteriorating loan portfolio performance.

Fitch also has ratings on approximately $2 billion of reverse
mortgage transactions that include Financial Freedom serviced
mortgages.

More information is available in the following press releases, all
of which are available at www.fitchratings.com

--'Fitch Downgrades & Removes Indymac's Servicer Ratings From
Watch Negative', July 14, 2008; --'Fitch Downgrades & Removes
Financial Freedom's Servicer Rating From Watch Negative', July 14,
2008. --'Fitch Downgrades Indymac Bank to 'D' on Failure, July 14,
2008.

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
Vincent Barberio, 212-908-0505
Grant Bailey, 212-908-0544
or
Media Relations:
Sandro Scenga, 212-908-0278

Copyright Business Wire 2008