April 17, 2007

Moody's Affirms PNC Consumer Services’ of SQ2+ as a Primary Servicer of
Home Equity Mortgage Loans

U.S. Residential Mortgage Servicer Rating Action

Moody's Investors Service has affirmed PNC Bank N.A.’s rating of SQ2+ as a Primary Servicer of home equity residential mortgage loans. PNC Bank N.A. provides consumer lending services through its PNC Consumer Services (“PNCCS”) business unit. Moody's rating are based on strong collection abilities, above average loss mitigation results and strong servicing stability.

PNCCS is a subsidiary of the PNC Financial Services Group (NYSE: PNC), a publiclytraded, financial services company headquartered in Pittsburgh, Pennsylvania. PNCCS services primarily first and second lien home equity lines of credit (HELOCs) and first and second lien home equity installment loans (HEILs). At the time of Moody’s review, subordinate liens comprised approximately 63% of total accounts and approximately 62% of the unpaid principal balance (UPB). PNCCS’s third-party servicing represents approximately 47% of the company’s total servicing portfolio on a UPB basis. PNCCS offers both origination and servicing to its clients. Moody’s rating applies only to second lien HELOCs and HEILs serviced by PNCCS.

As of February 28, 2007, PNCCS’s servicing portfolio totaled 1,008,025 loans for an unpaid balance of approximately $14.9 billion. Servicing operations for PNC Consumer Services are located in Pittsburgh, Pennsylvania.

PNCCS has demonstrated a solid ability to service delinquent loans and has strong collections results. The collections group operates in a blended call environment in which both inbound and outbound calls are handled by collectors. A predictive dialer
system is used to conduct calling campaigns and calls are prioritized using a behavioral scoring model. Though all collections calls are recorded, the company only records a portion of its customer service calls. Moody’s believes the practice of 100% call
recording may assist servicers in training new employees and resolving potential borrower disputes.

Moody’s views PNCCS’s loss mitigation results to be above average. PNCCS determines the default resolution based on an analysis of the borrower’s financial situation, intentions, and history of loss mitigation options, as well as loan characteristics
such as lien position, collateral value, and outstanding balance.

Moody’s views PNCCS as strong in servicing stability. PNC Consumer Services Group is a wholly-owned subsidiary of PNC Financial Services Group, a publicly-traded company which holds PNC Bank, among other assets. The company has a comprehensive
disaster recovery plan and performs periodic testing of internal controls in addition to audit reviews.

Moody’s SQ ratings represent its view of a servicer’s ability to prevent or mitigate asset pool losses across changing markets. The rating scale ranges from SQ1 (strong) to SQ5 (weak). Where appropriate, a “+” or “-“ modifier will be appended to the relevant rating to indicate a servicer’s relative servicing quality within a particular category. Moody’s servicer ratings are differentiated in the marketplace by focusing on performance management. SQ ratings for US residential mortgage servicers incorporate assessments of delinquency transition rates, foreclosure timeline management, loan cure rates, recoveries, loan resolution outcomes, and REO management – all critical indicators of a servicer’s ability to maximize returns from mortgage portfolios.

Moody’s servicer ratings also consider the company’s ability to maintain its focus on high quality servicing in an economic downturn. Servicing operations can be stressed by increasing the number of delinquent loans while at the same time increasing the need for liquidity. The SQ rating reflects our expectation of the impact that the servicing will have on the on-going credit performance of the portfolio. For this reason, Moody’s monitors SQ ratings based on periodic information provided by servicers and conducts a formal reevaluation of its servicer ratings annually.