Exhibit 99.15
KPMG Peat Marwick LLP
1600 Market Street
Philadelphia, PA 19103-7212
Independent Accountants' Report
The Board of Directors
GE Capital Mortgage Services, Inc.:
We have examined management's assertion about GE Capital Mortgage Services,
Inc.'s (the Company's) compliance with the minimum servicing standards
identified in the Mortgage Bankers Association of America's Uniform Single
Attestation Program for Mortgage Bankers (the USAP) for home equity loans
(including those serviced by the Company pursuant to various pooling and
servicing agreements relating to the Company's publicly rated mortgage-backed
securities program) as of and for the year ended December 31, 1997 included in
the accompanying management assertion. Management is responsible for the
Company's compliance with those minimum servicing standards. Our responsibility
is to express an opinion on management's assertion about the Company's
compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Company's compliance with the
minimum servicing standards and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on the Company's compliance with the minimum servicing
standards.
In our opinion, except for noncompliance with minimum servicing standard I.1.,
management's assertion that the Company complied with the aforementioned minimum
servicing standards for home equity loans as of and for the year ended December
31, 1997 is fairly stated, in all material respects.
As discussed in managementOs assertion, the material noncompliance occurred at
the Company during the year ended December 31, 1997. With respect to minimum
servicing standard I.1., two of 10 custodial account reconciliations tested
contained reconciling items that were not resolved within 90 calendar days of
their original identification.
These conditions were considered in determining the nature, timing and extent of
audit tests applied in our audit of the 1997 consolidated financial statements,
and this report does not affect our report dated January 23, 1998 on those
consolidated financial statements.
/s/ KPMG Peat Marwick LLP
February 17, 1998
GE Capital Mortgage Services, Inc.
A unit of GE Capital Mortgage Corporation
Three Executive Campus
Cherry Hill, NJ 08002
(609) 661-6100, 800-257-7818
Except for non-compliance with minimum servicing standard I.1 described below,
as of and for the year ended December 31, 1997, GE Capital Mortgage Services,
Inc. (the Company) has complied in all material respects with the minimum
servicing standards for home equity servicers as set forth in the Mortgage
Bankers Association of America's Uniform Single Attestation Program for Mortgage
Bankers. As of and for this same period, the Company had in effect a fidelity
bond and errors and omissions policy in the minimum amount of $120 million and
$20 million, respectively.
With respect to minimum servicing standard I.1., certain accounts contained
reconciling items that were not resolved within ninety (90) calendar days of
their original identification. As of December 31, 1997, there were unresolved
reconciling items in less than one percent (1%) of such accounts. It is the
Company's policy to clear all reconciling items within thirty (30) days from the
date of their original identification.
/s/ Glen Messina
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Glen Messina
Vice President, Treasurer and Chief Financial Officer
GE Capital Mortgage Services, Inc.