HUD has issued a 90-day moratorium on foreclosures in certain zip codes in New York, NY; Atlanta, GA; Chicago, IL; and Los Angeles, CA. The moratorium does not apply to properties which Servicer records indicate were vacant or abandoned on or before August 15, 2000 or which are subsequently found through inspection to be vacant or abandoned. The moratorium letter provides the zip codes to which the moratorium applies for each state.

HUD issued an additional moratorium letter that:
1. It expands the zip codes to which the moratorium applies in New York. The additional zip codes for New York are 10456, 10457, 10458, 10460, 10466, 10467, 10472, and 10473.

2. The new letter also provides that as for attorney fee reimbursement, HUD will treat the foreclosure suspensions required by the moratorium similar to the bankruptcy action suspensions. Mortgagees may claim the actual attorney fees incurred, up to a maximum of 75% of HUD's Attorney Fee Schedule for a foreclosure not completed due to the moratorium. For foreclosures that are completed, mortgagees may claim their actual attorney fees up to the allowable in the Attorney Fee Schedule.

We will keep you advised of any further developments.

Robert