[LETTERHEAD OF PRICEWATERHOUSECOOPERS LLP]
EXHIBIT 99.1
Report of Independent Accountants
To the Board of Directors and
Shareholder of Equity One, Inc.
We have examined management's assertion about Equity One, Inc. and its
subsidiaries' (the "Company") compliance with the minimum servicing standards
("standards") identified in the Mortgage Bankers Association of America's
Uniform Single Attestation Program for Mortgage Bankers ("USAP") as of and for
the year ended November 30, 1999 included in the accompanying management
assertion (see Exhibit I). 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 entity'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
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 standards.
In our opinion, management's assertion that the Company complied with the
aforementioned standards as of and for the year ended November 30, 1999 is
fairly stated, in all material respects.
PricewaterhouseCoopers LLP
February 18, 2000
[LETTERHEAD OF EQUITY ONE]
Exhibit 1
Management's Assertion Concerning Compliance
with USAP Minimum Servicing Standards
February 18, 2000
As of and for the year ended November 30, 1999, Equity One, Inc. and its
subsidiaries (the "Company"), a wholly owned subsidiary of Popular North
America, Inc. (the "Parent"), have complied in all material respects with the
minimum servicing standards set forth in the Mortgage Bankers Association of
America's Uniform Single Attestation Program for Mortgage Bankers ("USAP")
solely for the purpose of servicing the residential mortgage loans underlying
the Mortgage Pass Through Certificates, Series 1997-1, 1998-1 and 1999-1 (the
"Agreement") except as noted as follows:
Instances of non-compliance with Section III.3 of the Uniform Single Attestation
Program requiring that tax and insurance payments be made on or before the
penalty or insurance policy expiration dates, as indicated on the tax bills and
insurance premium notices, respectively, provided that such support has been
received by the servicing entity at least thirty (30) calendar days prior to
these dates occurred during fiscal 1999. Management is currently working to
appropriately train servicing personnel to avoid future problems regarding
timely payment of taxes and insurance.
Instances of non-compliance with Section V.3 of the Uniform Single Attestation
Program requiring that escrow accounts be analyzed, in accordance with the
mortgagor's loan documents, on at least an annual basis occurred during fiscal
1999. Management is currently implementing procedures to avoid further
problems regarding the timeliness of escrow analysis.
Instances of non-compliance with Section V.4 of the Uniform Single Attestation
Program requiring that interest on escrow accounts be paid or credited to
mortgagors in accordance with the applicable state laws occurred during fiscal
1999. Senior management and the compliance department have communicated the need
to appropriately calculate interest on escrow balances by state with the
servicing department.
As of and for this same period, the Company had in effect fidelity bond and
errors and omissions policies through its Parent company with individual
coverage for each and every loss of in the amounts of $2,500,000 and $1,000,000,
respectively.
/s/ John N. Martella 2-28-00
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John N. Martella, EVP Date
Servicing
- YOUR LOAN SOURCE -
523 Fellowship Road * Suite 230 * Mt. Laurel, NJ 08054
856 o 273 o 1119 * Fax: 856 o 273 o 1929