Fitch Takes Various Rtg Actions on 2 Delta Funding Corp. Transactions

Delta 2001-2

--Class M-1 affirmed at 'AAA';

--Class M-2 affirmed at 'BBB+';

--Class B downgraded to 'B' from 'BB-'.

Renaissance 2002-1

--Class M-1 affirmed at 'AA';

--Class M-2 rated 'BBB-', placed on Rating Watch Negative;

--Class B downgraded to 'CC/DR4' from 'B'.

The affirmations reflect a satisfactory relationship between credit enhancement (CE) and future loss expectations and affect approximately $24.4 million of outstanding certificates.

The downgrades, affecting $5.4 million of outstanding certificates, reflect deterioration in the relationship of CE to future loss expectations. For both transactions, losses have exceeded excess spread for 11 of the last twelve months, causing overcollateralization (OC) to fall below its target level.

In addition, both transactions have 60day+ delinquencies (including loans in foreclosure, bankruptcy and real-estate owned (REO)) over 40% of the current pool balance. As a result, the triggers on these trusts are failing and principal is being distributed sequentially to the classes. While this helps protect the mezzanine classes, the failed triggers will extend the life of the subordinate bonds and increase the risk at the bottom of the capital structure.

Class M-2 from Renaissance 2002-1 was placed on Rating Watch Negative due trends in serious delinquency and losses. Over the last twelve months, losses have exceeded excess spread by an average of approximately $100,000 per month. As a result, OC is well below its target and the class B bond, which provides protection for the M-2 bond, is in danger of taking a principal writedown. Fitch will monitor this transaction over the next six months to see if this trend continues before taking a long term rating action on class M-2.

The underlying collateral for the mortgage transactions listed above consist of both fixed- and adjustable-rate mortgage loans secured by first and second liens on residential mortgages extended to subprime borrowers. As of the October 2007 distribution date, Delta 2001-2 and Renaissance 2002-1 are seasoned 72 and 67 months, respectively, and the pool factor (current outstanding collateral balance as a percentage of original collateral balance) is 11% for both transactions. The mortgage loans are being serviced by Ocwen Financial Corp. (rated 'RPS2' by Fitch).

Fitch will closely monitor these transactions. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at .

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at .

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, . Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.