September 06, 2005 12:48 ET

Fitch Ratings Affirms Litton Loan Servicing's Top Ratings

NEW YORK, NY -- (MARKET WIRE) -- September 6, 2005 -- C-BASS, the established leader in servicing and securitizing credit-sensitive residential mortgages, and an affiliate of MGIC (NYSE: MTG) and Radian Group Inc. (NYSE: RDN), today announced that on August 30, 2005 Fitch Ratings affirmed Litton Loan Servicing's 'RPS1' residential primary servicer ratings for subprime and high loan to value (HLTV) mortgages and its 'RSS1' residential special servicer ratings. The ratings are Fitch's highest, on a scale of 1 to 5, with 1 being the highest rating.

"We are very pleased that Fitch has reaffirmed our top ratings," said Larry B. Litton, Sr., Chief Executive Officer of Litton Loan Servicing. "We are committed to maintaining the high standards we are known for and as are befitting our top rating."

"The primary servicer ratings are based on the company's highly experienced management team, sophisticated default management systems, and lengthy experience in servicing defaulted residential loans. The special servicer rating is based on the company's ability to cure, manage, and liquidate nonperforming residential mortgage assets," said Fitch.

Founded in 1988, Litton Loan Servicing began as a subservicer of problem loans from various mortgage servicers and private investors. The union of C-BASS and Litton in 1996 produced a merger of advanced credit analytics expertise with default management experience and state-of-the-art technology. Litton has clearly established itself as one of the premiere residential mortgage servicers in the industry. As of May 31, 2005, Litton serviced a portfolio of approximately 280,000 loans with an unpaid principal balance of approximately $34 billion.

On December 1, 2004, Litton acquired the portfolio of PCFS Mortgage Resources (PCFS). The acquisition increased Litton's total portfolio by approximately 30%. Additionally, as part of the acquisition, Litton acquired and retained PCFS' Atlanta servicing platform. This platform, along with growth in Litton's Houston operations, doubled Litton's ability to manage delinquent loans. According to Fitch, "...Litton's acquisition of the PCFS assets has provided the company with additional capacity and upgraded technology that will position the company for future growth."

C-BASS is a New York-based company specializing in the acquisition, servicing and securitization of credit-sensitive residential mortgages. C-BASS combines advanced credit risk analysis, seasoned loss mitigation expertise, and proprietary default management technology to provide special servicing and subprime servicing for credit sensitive and non-performing mortgage loans. C-BASS is a limited liability company capitalized by MGIC Investment Corporation (NYSE: MTG), Radian Group Inc. (NYSE: RDN), and C-BASS management. MGIC Investment Corporation, based in Milwaukee, WI, is the parent of Mortgage Guaranty Insurance Corporation (MGIC), and Radian Group Inc., based in Philadelphia, PA, is the parent of Radian Guaranty Inc.

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