|DLJ Mortgage Capital and Fairbanks Sign Letter of Intent For Servicing Arrangement
Integration of Olympus and Fairbanks Servicing Platforms Would Strengthen CSFB's Asset Backed and Mortgage Backed Underwriting Businesses
NEW YORK, NY (May 8, 2002) -- DLJ Mortgage Capital, a Credit Suisse First Boston affiliate, and Fairbanks Capital Corp. of Salt Lake City, Utah announced today that they have signed a letter of intent to enter into a broad servicing agreement that encompasses a variety of CSFB-originated mortgage products, including alternative A credit, sub prime and delinquent loan servicing. It is likely that, as part of the arrangement, CSFB will merge its highly rated Austin, Texas-based primary and special servicing platform called Olympus into Fairbanks.
The agreement to integrate the Olympus servicing platform into Fairbanks will permit the CSFB Asset Backed and Mortgage Backed Finance Group to focus on its core conduit and underwriting activities. The proposed transaction with Fairbanks, which enjoys the highest ratings for sub prime and special servicing from all three independent rating agencies, demonstrates CSFB's long-term commitment to asset performance and support of its ABS and MBS securities.
The proposed transaction would also increase Fairbank's strong servicing position in sub prime products and marks their foray into Alt A servicing. The influx of nearly 300 Olympus primary and special servicing personnel and $12 billion of managed assets into Fairbanks offers additional scale, personnel resources and new capabilities in alternative A servicing. The proposed transaction is expected to close in the 3rd quarter of 2002.
Credit Suisse First Boston
About Credit Suisse First Boston:
Credit Suisse First Boston (CSFB) is a leading global investment bank serving institutional, corporate, government and individual clients. CSFB's businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital and correspondent brokerage services. CSFB operates in over 89 locations across more than 37 countries on 6 continents. The Firm is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services company. For more information on Credit Suisse First Boston, please visit our Web site at http://www.csfb.com.