S&P Afms First Boston Mtg Sec Corp 1992-3 Cls 2-A Rtg.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 19, 2002

Standard & Poor's Ratings Services today affirmed its triple-'A' rating on class 2-A of First Boston Mortgage Securities Corp.'s conduit multifamily mortgage pass-through certificates series 1992-3 (see list).

The affirmation reflects the increased credit support available for the class due to loan pay-offs and the value appreciation that has occurred in the collateral. Based on Standard & Poor's cooperative valuation analysis, the current loan-to-value (LTV) ratio is estimated at 9.03% as compared to 14.75% at issuance. The collateral pool comprises five loans with a principal balance of $2.77 million, secured by underlying first mortgages on cooperative buildings. In addition, there is cash collateral of $2.18 million to cover any losses related to the outstanding loans. Three of the properties are located in New York, N.Y., one property is located in the Bronx, and one is in Brooklyn. Standard & Poor's estimate is that the New York City cooperatives represent 46% of the collateral value.

To date, there have been no modifications, discounted pay-offs, foreclosures, REO, or losses. Currently, there are no delinquencies or specially serviced loans. The strong performance of the collateral pool can be attributed to both the ability of a cooperative to maintain favorable debt service coverage levels through periodic shareholder maintenance increases and improved LTV ratios, reflecting the strength in the New York City cooperative market. The originator and servicer of the mortgage loans, National Consumer Cooperative Bank, is a Washington, D.C.-based bank that is a market leader in providing underlying mortgages on cooperative buildings.

The New York City cooperative market has experienced significant price appreciation during the past decade. Based on a study by Insignia Douglass Elliman/Miller Samuel Inc., the average value of a cooperative apartment has increased by 54% from the time the loans were securitized through June 30, 2002. For the second quarter, the average price increased by 2.75% from that of the previous quarter. The cooperative market has benefited from low mortgage interest rates and the aggressive buying by the price sensitive, first-time homebuyer. As a result, studio and one-bedroom apartments have paced the market in recent price appreciation.

Although, Standard & Poor's does not expect cooperative prices to maintain their current momentum, and possibly reverse the trend if mortgage rates rise, the credit support levels and low LTV ratios available in these programs are sufficient at their current ratings (see the article titled "Resilient New York City Cooperative Market Spurs CMBS Upgrades" available on RatingsDirect, Standard & Poor's Web-based credit analysis system; in addition, the article can also be found on Standard & Poor's Web site at www.standardandpoors.com. Click on Forum; then, under Ratings Commentary, click on Structured Finance). Reflecting the significant equity build-up that has occurred at the properties, the risk of any loan default is extremely low.

Rating Affirmed

First Boston Mortgage Securities Corp.
Conduit multifamily mortgage pass-thru certs series 1992-3

Class    Rating    Credit Support (%)
2-A      AAA       44.11

Copyright 2002, Standard & Poor's Ratings Services