EXHIBIT 99.1
PRICEWATERHOUSECOOPERS LLP
PricewaterhouseCoopers Center
300 Madison Avenue
New York NY 10017
Telephone (646) 471 3000
Facsimile (813) 286 6000
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and
Shareholders of Equity One, Inc.:
We have examined management's assertion about Equity One, Inc. and its
subsidiaries's (the "Company") compliance with the minimum servicing 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, 2004 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 Company's compliance based on our examination.
Our examination was made in accordance with attestation 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, management's assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended November
30, 2004 is fairly stated, in all material respects.
/s/ PricewaterhouseCoopers LLP
February 14, 2005
301 Lippincott Drive Telephone (856) 396-3601
Marlton, NJ 08053 Fax (856) 396-2712
MANAGEMENT'S ASSERTION CONCERNING COMPLIANCE
WITH USAP MINIMUM SERVICING STANDARDS
February 25, 2005
As of and for the year ended November 30, 2004, Equity One, Inc. and its
subsidiaries (the "Company"), a wholly-owned subsidiary of Popular Financial
Holdings, Inc., 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 Loan Asset
Backed Certificate Series 1997-1, 1998-1, 1999-1, 2000-1, 2001-1, 2001-2,
2001-3, 2002-1, 2002-2, 2002-3, 2002-4, 2002-5, 2003-1, 2003-2, 2003-3, 2003-4,
2004-1, 2004-2, 2004-3, 2004-4, 2004-5 (the "Agreement").
As of and for this same period, the Company had in effect fidelity bond and
errors and omissions policies in the amounts of $50,000,000 and $25,000,000,
respectively.
/s/ James H. Jenkins
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James H. Jenkins
Executive Vice President,
Chief Financial Officer
/s/ John N. Martella
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John N. Martella
Group Executive Vice
President of Loan Servicing