UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] Annual report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the fiscal year ended December 31, 2003
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the transition period from to
Commission File Number 333-100669-17
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
(Exact name of registrant as specified in its charter)
Delaware 13-3320910
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.)
11 Madison Ave.
New York, New York 10010
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code :(212)325-2000
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
CSFB MORTGAGE-BACKED PASS-THROUGH CERTIFICATES, SERIES 2003-AR15
(Title of each class of securities covered by this Form)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2). Yes No [X]
Documents incorporated by reference: None
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
CSFB MORTGAGE-BACKED PASS-THROUGH CERTIFICATES, SERIES 2003-AR15
- ----------------------------------------------------------------
PART I
Item 1. Business
Omitted.
Item 2. Properties
Omitted.
Item 3. Legal Proceedings
The Registrant is not aware of any material legal proceeding with respect to,
the Company, the Master Servicer, the Servicers, the Trust Administrator or the
Trustee, in each case if applicable, as related to the Trust.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote or consent of Holders of the Offered
Certificates during the fiscal year covered by this report.
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
The Trust does not issue stock. There is currently no established secondary
market for the Certificates. As of December 31, 2003, the number
of holders of each Class of Offered Certificates was 13.
Item 6. Selected Financial Data
Omitted.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Omitted.
Item 7a. Quantitative and Qualitative Disclosures About Market Risk
Not Applicable
Item 8. Financial Statements and Supplementary Data
Omitted.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
There was no change of accountants or disagreement with accountants on any
matter of accounting principles or practices or financial disclosure.
Item 9a. Controls and Procedures
Not Applicable
-2-
PART III
Item 10. Directors and Executive Officers of the Registrant
Omitted.
Item 11. Executive Compensation
Omitted.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Omitted.
Item 13. Certain Relationships and Related Transactions
No reportable transactions have occurred.
Item 14. Principal Accounting Fees and Services
Not applicable.
PART IV
Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) The following documents are filed as part of this report:
(1) Financial Statements:
Omitted.
(2) Financial Statement Schedules:
Omitted.
(3) Exhibits:
Annual Independent Accountants' Servicing Report,
filed as Exhibit 99.1 hereto.
Annual Servicer's Statement of Compliance, filed as Exhibit 99.2, hereto.
(b) Reports on Form 8-K: The following Current Reports on Form 8-K were
filed by the Registrant during the last quarter of 2003.
Current Reports on Form 8-K, dated October 27, 2003, November 25,
2003, and December 26, 2003, were filed for the purpose of filing the
Monthly Statement sent to the Holders of the Offered Certificates for
payments made on the same dates. The items reported in such Current Report
were Item 5 and Item 7.
(c) Exhibits to this report are listed in Item (15)(a)(3) above.
(d) Not applicable.
-3-
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Credit Suisse First Boston Mortgage Securities Corp.
CSFB Mortgage-Backed Pass-Through Certificates, Series 2003-AR15
By: /s/ Andrew Kiumura
------------------------------
Name: Andrew Kimura
Title: President
Company: Credit Suisse First Boston Mortgage Securities Corp.
Date: March 26, 2004
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Sarbanes-Oxley Certification
I, Andrew Kimura, certify that:
1. I have reviewed this annual report on Form 10-K, and all reports on Form
8-K containing distribution or servicing reports filed in respect of
periods included in the year covered by this annual report, of Credit
Suisse First Boston Mortgage Securities Corp., CSFB Mortgage-Backed
Pass-Through Certificates, Series 2003-AR15
2. Based on my knowledge, the information in these reports, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of
the last day of the period covered by this annual report;
3. Based on my knowledge, the distribution or servicing information required
to be provided to the trustee by the servicer under the pooling and
servicing, or similar, agreement, for inclusion in these reports is
included in these reports;
4. Based on my knowledge and upon the annual compliance statement included in
the report and required to be delivered to the trustee in accordance with
the terms of the pooling and servicing agreement, or similar agreement, and
except as disclosed in the reports, the servicer has fulfilled its
obligations under the servicing agreement; and
5. The reports disclose all significant deficiencies relating to the
servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a
review in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or similar procedure, as set forth in the pooling and
servicing or similar agreement that is included in these reports.
In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated parties: the Trustee, each
Servicer and the Master Servicer.
Date: March 29, 2004
Signature: /s/ Andrew Kiumura
------------------------------
Company: Credit Suisse First Boston Mortgage Securities Corp.
Title: President
-5-
SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION
15(D) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO
SECTION 12 OF THE ACT.
The registrant has not sent an annual report or proxy material to its security
holders. The registrant will not be sending an annual report or proxy material
to its security holders subsequent to the filing of this form.
-6-
EXHIBIT INDEX
Exhibit Description
99.1 Annual Independent Accountant's Servicing Report
a) Chase Manhattan Mortgage Corporation, as Master Servicer
b) Washington Mutual Mortgage Securities Corp., as Servicer
c) Washington Mutual Bank FA, as Servicer
d) Fairbanks Capital Corp., as Servicer
e) Ocwen Federal Bank FSB, as Servicer
99.2 Annual Servicer Statement of Compliance
a) Chase Manhattan Mortgage Corporation, as Master Servicer
b) Washington Mutual Mortgage Securities Corp., as Servicer
c) Washington Mutual Bank FA, as Servicer
d) Fairbanks Capital Corp., as Servicer
e) Ocwen Federal Bank FSB, as Servicer
-7-
EXHIBIT 99.1 - Annual Independent Accountant's Servicing Report
Chase Manhattan Mortgage Corporation, as Master Servicer
- ------------------------------------------------------------
PricewaterhouseCoopers, LLP
1177 Avenue of the Americas
New York, NY 10026
Telephone: (646) 471-4000
Facsimile: (646) 471-4100
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors of
Chase Manhattan Mortgage Corporation
We have examined management's assertion about Chase Manhattan Mortgage
Corporation's (the "Company") compliance with the minimum servicing standards as
set forth in the Mortgage Bankers Association of America's Uniform Single
Attestation Program for Mortgage Bankers ("USAP") as of and for the year ended
December 31, 2003. The Company has interpreted USAP and determined that USAP
minimum servicing standards I.1, I.2, I.3, III.1, III.5, IV.1, and VII.1 are
applicable to master servicers and are included in the accompanying management
assertion (see Exhibit I). The Company has interpreted USAP and determined that
USAP minimum servicing standards I.4, II.1, II.2, II.3, II.4, III.2, III.3,
III.4, III.6, V.1, V.2, V.3, V.4 and VI.1 are not applicable to master
servicers. In cases where the Company does not service the loans underlying the
master servicing, our procedures were limited to testing management policy, of
obtaining and reviewing USAP reports from the subservicers' independent auditors
on an annual basis, and obtaining an reading the most recently available USAP
reports from the subservicers' independent auditors. In this regards, we
obtained USAP reports for the year ended December 31, 2003 on 16% of the
subservicers. These subservicrs serviced loans comprising 75% of the unpaid
principal balance of the Company's Master Servicing portfolio as of December 31,
2003.
Our opinion as expressed herein, as it relates to USAP minimum servicing
standards for which subservicers are responsible for compliance, is based solely
upon the reports of the subservicers' independent auditors. Management is
responsible for the Company's compliance with the remaining 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 attestion 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 such procedures
as we considered necessary in the circumstances. We believe that our examination
and the reports of the other auditors provide 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, based on our examination and the reports of the
subservicer's independent auditors, management's assertion that the Company
complied with the aforementioned minimum servicing standards as of and for the
year ended December 31, 2003 is fairly stated, in all material respects.
By: /s/ PricewaterhouseCoopers, LLC
- ------------------------------------
PricewaterhouseCoopers, LLC
March 15, 2004
EXHIBIT I
Chase Manhattan Mortgage Corporation
3415 Vision Drive
Columbus, OH 43219-6009
MANAGEMENT'S ASSERTION CONCERNING COMPLIANCE WITH USAP
MINIMUM SERVICING STANDARDS
March 15, 2004
As of and for the year ended December 31, 2003, Chase Manhattan Mortgage
Corporation (the "Company"), has 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") that
we have determined are applicable to master servicers. We have interpreted USAP
and determined that minimum servicing standards I.1, I.2, I.3, III.1, III.5,
IV.1, and VII.1 as set forth in USAP are applicable to master servicers. We have
also interpreted that USAP minimum servicing standards I.4, II.1, II.2, II.3,
II.4, III.2, III.3, III.4, III.6, V.1, V.2, V.3, V.4 and VI.1 as set forth in
USAP are not applicable to master servicers; for thse minimum servicing
standards the Company relies on the performance of its subservicers. The
assertion relates specifically to the Company's Master Servicing Portfolio.
It is the policy of the Company to obtain USAP reports from the independent
auditors of its subservicers on an annual basis. Not all of those USAP reports
for the year ended December 31, 2003 will be available as of the date of this
report. As of March 15, 2004, the Company has obtained USAP reports for 16% of
its subservicers. These subservicers serviced loans comprising 75% of the unpaid
principal balance of the Company's Master Servicing Portfolio as of December 31,
2003. Any items of non-compliance noted in the USAP received from the
subservicers as of the date of this report, have been included in Exhibit II
hereto.
As of and for this same period, the Company had in effect fidelity bond and
errors and ommissions policy in the amounts of $250,000,000 and $25,000,000,
respectively.
By: /s/ Bonnie Collins
- -----------------------------
Bonnie Collins
Senior Vice President
Chase Manhattan Mortgage Corporation
By: /s/ Diane Bentz
- -----------------------------
Diane Bentz
Senior Vice President
Chase Manhattan Mortgage Corporation
Exhibit II
Chase Manhattan Mortgage Corporation
Subservicers' USAP Report Exceptions
December 31, 2003
It is the policy of Chase Manhattan Mortgage Corporation (the "Company") to
obtain Uniform Single Attestation Program for Mortgage Bankers ("USAP") reports
from the independent auditors of its subservicers. As of March 15, 2004, the
Company has obtained USAP reports for 16% of its subservicers. These
subservicers serviced loans comprising 75% of the unpaid principal balance of
the Company's Master Servicing Portfolio as of December 31, 2003. The Company
noted that a number of the USAP reports contained items of noncompliance. The
following summarizes the items from these reports.
Servicer Exception
Ocwen Federal Bank FSB . Interest on escrow accounts in certain states
was not paid, or credited, to mortgagors in
accordance with the applicable state laws
during the year ended December 31, 2003.
. Certain reconciling items which arose during
the year ended December 31, 2003 were not
specifically identified and/or were not
cleared within 90 days of their original
identification.
-8-
Washington Mutual Mortgage Securities Corp., as Servicer
- ----------------------------------------------------------
Deloitte & Touche LLP
Suite 3300
925 Fourth Avenue
Seattle, WA 98104-1126
USA
Tel: +1 206 716 7000
Fax: +1 206 965 7000
www.deloitte.com
INDEPENDENT ACCOUNTANTS' REPORT
Board of Directors
Washington Mutual, Inc. and Subsidiaries
We have examined management's assertion that Washington Mutual, Inc. and
subsidiaries (the "Company") has complied as of and for the year ended December
31, 2003, with its established minimum servicing standards for single family
residential mortgaged identified in the accompanying Management's Assertion,
dated February 16, 2004. 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 conducted 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 its 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 its minimum
servicing standands.
In our opinion, management's assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended December
31, 2003 is fairly stated, in all material respects, based on the criteria set
forth in Appendix I.
By: /s/ Deloitte & Touche LLP
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February 16, 2004
WASHINGTON MUTUAL
MANAGEMENT'S ASSERTION
As of and for the year ended December 31, 2003, Washington Mutual Inc. and
Subsidiaries (the Company) has complied, in all material respects, with the
Company's established minimum servicing standards for single family residential
mortgages as set forth in Appendix I (the Standard). The Standards are based on
the Mortgage Banker's Association of America's Uniform Single Attestation
Program for Mortgage Bankers. As of and for this same period, the Company had in
effect a fidelity bond in the amount of $110 million, and errors and omissions
policy in the amount of $20 million.
By: /s/ Deanna Oppenheimer
- -----------------------------
Deanna Oppenheimer
President
Consumer Group
By: /s/ Dyan Beito
- -----------------------------
Dyan Beito
Executive Vice President
Home Loans Service Delivery-Consumer Group
By: /s/ Anthony T. Meola
- -----------------------------
Anthony T. Meola
Executive Vice President
Home Loans Production-Consumer Group
February 16, 2004
WASHINGTON MUTUAL
WASHINGTON MUTUAL, INC. AND SUBSIDIARIES
APPENDIX I: MINIMUM SERVICING STANDARDS FOR SINGLE FAMILY RESIDENTIAL MORTGAGES
AS SET FORTH IN THE MORTGAGE BANKERS ASSOCIATION OF AMERICA'S UNIFORM SINGLE
ATTESTATION PROGRAM FOR MORTGAGE BANKERS
I. CUSTODIAL BANK ACCOUNTS
1. Reconciliations shall be prepared on a monthly basis for all custodial bank
accounts and related bank clearing accounts. These reconciliations shall:
. be mathematically accurate;
. be prepared within forty-five (45) calendar days after the cutoff date;
. be reviewed and approved by someone other than the person who prepared
the reconciliation; and
. document explanations for reconciling items. These reconciling items
shall be resolved within ninety (90) calendar days of their original
identification.
2. Funds of the servicing entity shall be advanced in cases where there is an
overdraft in an investor's or a mortgagor's account.
3. Each custodial account shall be maintained at a federally insured
depository institution in trust for the applicable investor.
4. Escrow funds held in trust for a mortgagor shall be returned to the
mortgagor within thirty (30) calendar days of payoff of the mortgage loan.
II. MORTGAGE PAYMENTS
1. Mortgage payments shall be deposited into the custodial bank accounts and
related bank clearing accounts within two business days of receipt.
2. Mortgage payments made in accordance with the mortgagor's loan documents
shall be posted to the applicable mortgagor records within two business
days of receipt.
3. Mortgage payments shall be allocated to principal, interest, insurance,
taxes or other escrow items in accordance with the mortgagor's loan
documents.
4. Mortgage payments identified as loan payoffs shall be allocated in
accordance with the mortgagor's loan documents.
III. DISBURSEMENTS
1. Disbursements made via wire transfer on behalf of a mortgagor or investor
shall be made only by authorized personnel.
2. Disbursements made on behalf of a mortgagor or investor shall be posted
within two business days to the mortgagor's or investor's records
maintained by the servicing entity.
3. Tax and insurance payments shall be made on or before the penalty or
insurance policy expiration dates, as indicated on 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.
4. Any late payment penalties paid in conjunction with the payment of any tax
bill or insurance premium notice shall be paid from the servicing entity's
funds and not charged to the mortgagor, unless the late payment was due to
the mortgagor's error or omission.
5. Amounts remitted to investors per the servicer's investor reports shall
agree with cancelled checks, or other form of payment, or custodial bank
statements.
6. Unused checks shall be safeguarded so as to prevent unauthorized access.
IV. INVESTOR ACCOUNTING AND REPORTING
1. The servicing entity's investor reports shall agree with, or reconcile to,
investors' records on a monthly basis as to the total unpaid principal
balance and number of loans serviced by the servicing entity.
V. MORTGAGOR LOAN ACCOUNTING
1. The servicing entity's mortgage loan records shall agree with, or reconcile
to, the records of mortgagors with respect to the unpaid principal balance
on a monthly basis.
2. Adjustments on ARM loans shall be computed based on the related mortgage
note and any ARM rider.
3. Escrow accounts shall be analyzed, in accordance with the mortgagor's loan
documents, on at least an annual basis.
4. Interest on escrow accounts shall be paid, or credited, to mortgagors in
accordance with the applicable state laws.
VI. DELINQUENCIES
1. Records documenting collection efforts shall be maintained during the
period a loan is in default and shall be updated at least monthly. Such
records shall describe the entity's activities in monitoring delinquent
loans including, for example, phone calls, letters and mortgage payment
rescheduling plans in cases where the delinquency is deemed temporary
(e.g., illness or unemployment).
VII. INSURANCE POLICIES
1. A fidelity bond and errors and omissions policy shall be in effect on the
servicing entity throughout the reporting period in the amount of coverage
represented to investors in management's assertion.
-9-
Washington Mutual Bank FA, as Servicer
- ---------------------------------------
Deloitte & Touche LLP
Suite 3300
925 Fourth Avenue
Seattle, WA 98104-1126
USA
Tel: +1 206 716 7000
Fax: +1 206 965 7000
www.deloitte.com
INDEPENDENT ACCOUNTANTS' REPORT
Board of Directors
Washington Mutual Bank, FA. and Subsidiaries
We have examined management's assertion that Washington Mutual Bank, FA and
subsidiaries (the "Company") has complied as of and for the year ended December
31, 2003, with its established minimum servicing standards for single family
residential mortgaged identified in the accompanying Management's Assertion,
dated February 16, 2004. 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 conducted 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 its 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 its minimum
servicing standands.
In our opinion, management's assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended December
31, 2003 is fairly stated, in all material respects, based on the criteria set
forth in Appendix I.
By: /s/ Deloitte & Touche LLP
- ---------------------------
February 16, 2004
WASHINGTON MUTUAL
MANAGEMENT'S ASSERTION
As of and for the year ended December 31, 2003, Washington Mutual Bank, FA
and Subsidiaries (the Company) has complied, in all material respects, with the
Company's established minimum servicing standards for single family residential
mortgages as set forth in Appendix I (the Standard). The Standards are based on
the Mortgage Banker's Association of America's Uniform Single Attestation
Program for Mortgage Bankers. As of and for this same period, the Company had in
effect a fidelity bond in the amount of $110 million, and errors and omissions
policy in the amount of $20 million.
By: /s/ Deanna Oppenheimer
- -----------------------------
Deanna Oppenheimer
President
Consumer Group
By: /s/ Dyan Beito
- -----------------------------
Dyan Beito
Executive Vice President
Home Loans Service Delivery-Consumer Group
By: /s/ Anthony T. Meola
- -----------------------------
Anthony T. Meola
Executive Vice President
Home Loans Production-Consumer Group
February 16, 2004
WASHINGTON MUTUAL
WASHINGTON MUTUAL BANK, FA AND SUBSIDIARIES
APPENDIX I: MINIMUM SERVICING STANDARDS FOR SINGLE FAMILY RESIDENTIAL MORTGAGES
AS SET FORTH IN THE MORTGAGE BANKERS ASSOCIATION OF AMERICA'S UNIFORM SINGLE
ATTESTATION PROGRAM FOR MORTGAGE BANKERS
I. CUSTODIAL BANK ACCOUNTS
1. Reconciliations shall be prepared on a monthly basis for all custodial bank
accounts and related bank clearing accounts. These reconciliations shall:
. be mathematically accurate;
. be prepared within forty-five (45) calendar days after the cutoff date;
. be reviewed and approved by someone other than the person who prepared
the reconciliation; and
. document explanations for reconciling items. These reconciling items
shall be resolved within ninety (90) calendar days of their original
identification.
2. Funds of the servicing entity shall be advanced in cases where there is an
overdraft in an investor's or a mortgagor's account.
3. Each custodial account shall be maintained at a federally insured
depository institution in trust for the applicable investor.
4. Escrow funds held in trust for a mortgagor shall be returned to the
mortgagor within thirty (30) calendar days of payoff of the mortgage loan.
II. MORTGAGE PAYMENTS
1. Mortgage payments shall be deposited into the custodial bank accounts and
related bank clearing accounts within two business days of receipt.
2. Mortgage payments made in accordance with the mortgagor's loan documents
shall be posted to the applicable mortgagor records within two business
days of receipt.
3. Mortgage payments shall be allocated to principal, interest, insurance,
taxes or other escrow items in accordance with the mortgagor's loan
documents.
4. Mortgage payments identified as loan payoffs shall be allocated in
accordance with the mortgagor's loan documents.
III. DISBURSEMENTS
1. Disbursements made via wire transfer on behalf of a mortgagor or investor
shall be made only by authorized personnel.
2. Disbursements made on behalf of a mortgagor or investor shall be posted
within two business days to the mortgagor's or investor's records
maintained by the servicing entity.
3. Tax and insurance payments shall be made on or before the penalty or
insurance policy expiration dates, as indicated on 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.
4. Any late payment penalties paid in conjunction with the payment of any tax
bill or insurance premium notice shall be paid from the servicing entity's
funds and not charged to the mortgagor, unless the late payment was due to
the mortgagor's error or omission.
5. Amounts remitted to investors per the servicer's investor reports shall
agree with cancelled checks, or other form of payment, or custodial bank
statements.
6. Unused checks shall be safeguarded so as to prevent unauthorized access.
IV. INVESTOR ACCOUNTING AND REPORTING
1. The servicing entity's investor reports shall agree with, or reconcile to,
investors' records on a monthly basis as to the total unpaid principal
balance and number of loans serviced by the servicing entity.
V. MORTGAGOR LOAN ACCOUNTING
1. The servicing entity's mortgage loan records shall agree with, or reconcile
to, the records of mortgagors with respect to the unpaid principal balance
on a monthly basis.
2. Adjustments on ARM loans shall be computed based on the related mortgage
note and any ARM rider.
3. Escrow accounts shall be analyzed, in accordance with the mortgagor's loan
documents, on at least an annual basis.
4. Interest on escrow accounts shall be paid, or credited, to mortgagors in
accordance with the applicable state laws.
VI. DELINQUENCIES
1. Records documenting collection efforts shall be maintained during the
period a loan is in default and shall be updated at least monthly. Such
records shall describe the entity's activities in monitoring delinquent
loans including, for example, phone calls, letters and mortgage payment
rescheduling plans in cases where the delinquency is deemed temporary
(e.g., illness or unemployment).
VII. INSURANCE POLICIES
1. A fidelity bond and errors and omissions policy shall be in effect on the
servicing entity throughout the reporting period in the amount of coverage
represented to investors in management's assertion.
-10-
Fairbanks Capital Corp., as Servicer
- -------------------------------------
Ernst & Young LLP
725 South Figueroa Street
Los Angeles, CA 90017
Telephone: (213) 977-4200
www.ey.com
Report on Management's Assertion on
Compliance with Minimum Servicing Standards Set Forth in the
Uniform Single Attestation Program for Mortgage Bankers
Report of Independent Accountants
Board of Directors
Fairbanks Capital Corp.
We have examined management's assertion, included in the accompanying
report titled Report of Management, that Fairbanks Capital Corp., a wholly owned
subsidiary of Fairbanks Capital Holding Corp., ("Fairbanks") complied with the
minimum servicing standards set forth in the Mortgage Bankers Association of
America's Uniform Single Attestation Program for Mortgage Bankers (USAP) for the
year ended December 31, 2003. Management is responsible for the Fairbanks'
compliance with those requirements. Our responsibility is to express an opinion
on management's assertions about the Fairbanks' compliance based on our
examination.
Our examination was conducted in accordance with standards established by
the American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Fairbanks' compliance
with those requirements 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 Fairbanks' compliance with specified requirements.
In our opinion, management's assertion, that Fairbanks complied with the
aforementioned requirements for the year ended December 31, 2003, is fairly
stated, in all material respects.
This report is inended solely for the information and use of the Board of
Directors, Audit Committee, management, Fannie Mae, Freddie Mac, Ginnie Mae and
other investors in serviced assets and is not intended to be and should not be
used by anyone other than these specified parties.
By: /s/ Ernst & Young LLP
- --------------------------
January 19, 2004
FAIRBANKS CAPITAL CORP.
815 South West Temple
Salt Lake City, Utah 84115-4412
P.O. Box 65250
Salt Lake City, Utah 84165-0250
telephone (801) 293-1883
fax (801) 293-1297
Management's Assertion on Compliance
with the Minimum Servicing Standards set forth
in the Uniform Single Attestation Program for Mortgage Bankers
Report of Management
We, as members of management of Fairbanks Capital Corp. ("Fairbanks), are
responsible for complying with the minimum servicing standards as set forth in
the Mortgage Bankers Association of America's Uniform Single Attestation Program
for Mortgage Bankers ("USAP"). We are also responsible for establishing and
maintaining effective internal control over compliance with these standards. We
have performed an evaluation of the Fairbanks' compliance with the minimum
servicing standards as set forth in the USAP as of December 31, 2003 and for the
year then ended. Based on this evaluation, we assert that during the year ended
December 31, 2003, the Fairbanks complied, in all material respects, with the
minimum servicing standards set forth in the USAP.
As of December 31, 2003 and for the year then ended, Fairbanks had in
effect a fidelity bond in the amount of $55,000,000 and an errors and omissions
policy in the amount of $20,000,000.
/s/ James H. Ozanne
- --------------------------
James H. Ozanne
Chief Executive Officer
/s/ Matthew L. Hollingsworth
- ---------------------------
Matthew L. Hollingsworth
Chief Operating Officer
/s/ Barbara K. Wing
- ---------------------------
Barbara K. Wing
Senior Vice President and Controller
January 19, 2004
-11-
Ocwen Federal Bank FSB, as Servicer
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PricewaterhouseCoopers LLP
222 Lakeview Avenue
Suite 360
West Palm Beach, FL 33401
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT
To the Board of Directors
Ocwen Federal Bank FSB
We have examined management's assertion, included in the accompanying
Management Assertion of Conpliance with USAP, that, except for the noncompliance
related reconciliations described in the third paragraph and the noncompliance
related to interest on escrows described in the fifth paragraph, Ocwen Federal
Bank FSB (the "Bank")complied with the minimum servicing standards identified in
the Mortgage Bankers Association of America's ("MBA's") Uniform Single
Attestation Program for Mortgage Bankers ("USAP") as of and for the year ended
December 31, 2003. Management is responsible for the Bank's compliance with
those minimum servicing standards. Our responsibility is to express an opinion
on management's assertion about the Bank'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 Bank's compliance with the
minimum servicing standards and performing other such 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 Bank's compliance with the minimum servicing
standards.
Our examination disclosed noncompliance with minimum servicing standars
related to account reconciliations and interest on escrows applicable to the
Bank during the year ended December 31, 2003. Such noncompliance is described in
the accompanying Management Assertion on Compliance with USAP.
In our opinion, management's assertion that the Bank complied with the
aforementioned minimum servicing standards, except for noncompliance as
described in the accompanying Management Assertion on Compliance with USAP, as
of and for the year ended December 31, 2003 is fairly stated, in all material
respects.
By: /s/PricewaterhouseCoopers, LLC
- ------------------------------------
PricewaterhouseCoopers, LLC
March 12, 2004
MANAGEMENT ASSERTON ON COMPLIANCE WITH USAP
March 12, 2004
As of and for the year ended December 31, 2003, except as specifically noted
below, Ocwen Federal Bank FSB (the "Bank") has complied in all material respects
with the minimum servicing standards set forth in the Mortgage Bankers
Assocation of America's ("MBA's") Uniform Single Attestation Program for
Mortgage Bankers ("USAP").
Standard: Reconciliations shall be prepared on a monthly basis for all custodial
bank accounts and related bank clearing accounts. These reconciliations shall be
mathematically accurate, be prepared within forty five (45) calendar days of the
cutoff date; be reviewed and approved by someone other than the person who
prepared the reconciliation; and document explanations for reconciling
items.These reconciling items shall be resolved within ninety (90) calendar days
of their original identification.
Certain reconciling items which arose during the year ended December 31, 2003
were not specifically identified and/or were not cleared with 90 days of their
original identification. Management has developed and implemented an action plan
and continues to resolve outstanding reconciling items. All significant
reconciling items have been isolated and reviewed by the Company, and the
Company believes these items will not have a material impact on the status of
any custodial accounts.
Standard: Interest on escrow accounts shall be paid or credited, to mortgagors
in accordance with the applicable state laws.
Interest on escrow accounts in certain states was not paid, or credited, to
mortgagors in accordance with the applicable state laws during the year ended
December 31, 2003. The Bank has corrected the affected accounts by paying or
crediting the appropriate interest on escrow. The bank is currently implementing
an enhancement to its REALServicingTM servicing system to ensure that, for loans
collateralized by properties located in states that require the payment of
interest on escrow accounts, the pay of crediting os cuch interest is in
accordance with applicable state laws.
As of and for this same period, the Bank had in effect a fidelity bond in the
amount of $15,000,000 and an errors and omissions policy in the amount of
$5,000,000.
By: /s/ Ronald M. Faris
- ------------------------
Ronald M. Faris
President
By: /s/ Scott W. Andreson
- -------------------------
Scott W. Andreson
Senior Vice President of Residential Assets
By: /s/ Brian J. LaForest
- --------------------------
Brian J. LaForest
Director of Investor Reporting
Ocwen Federal Bank FSB
1675 Palm Beach Lakes Boulevard
West Palm Beach, FL 33401
P.O. Box 24737
West Palm Beach, FL 33416-4737
-12-
EXHIBIT 99.2 - Annual Servicer's Statement of Compliance
Chase Manhattan Mortgage Corporation, as Master Servicer
- ------------------------------------------------------------
OFFICER'S CERTIFICATION
Pursuant to Article III of the Pooling and Servicing Agreement, the undersigned
Officers of Chase Manhattan Mortgage Corporation certifies to the following:
1. A review of the activities of Chase Manhattan Mortgage Corporation, as
Master Servicer during the preceding calendar year and of its performance
under the Master Servicing Agreement has been made under such officer's
supervision.
2. To the best of such Officer's knowledge, based on such review, Chase
Manhattan Mortgage Corporation has fulfilled all its obligations under this
Agreement throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to
such officer and the nature and status thereof and the action being taking
by Chase Manhattan Mortgage Corporation to cure such default.
CHASE MANHATTAN MORTGAGE CORP.
Certified By: /s/ Diane Bentz Date: March 15, 2004
---------------------- ---------------
Diane Bentz
Senior Vice President
/s/ Michele L. Paul Date: March 15, 2004
---------------------- ---------------
Michele L. Paul
Vice President
EXHIBIT A
Transaction Pooling and Servicing Agreement dated as of
- ----------- -------------------------------------------
CSFB 2003-AR1 January 1, 2003
CSFB 2003-AR2 January 1, 2003
CSFB 2003-AR5 February 1, 2003
CSFB 2003-8 March 1, 2003
CSFB 2003-AR9 March 1, 2003
CSFB 2003-10 April 1, 2003
CSFB 2003-11 May 1, 2003
CSFB 2003-AR12 April 1, 2003
CSFB 2003-AR15 May 1, 2003
CSFB 2003-17 June 1, 2003
CSFB 2003-AR18 July 1, 2003
CSFB 2003-AR20 July 1, 2003
CSFB 2003-AR22 August 1, 2003
CSFB 2003-AR24 September 1, 2003
CSFB 2003-AR26 October 1, 2003
CSFB 2003-AR28 November 1, 2003
-13-
Washington Mutual Mortgage Securities Corp., as Servicer
- ----------------------------------------------------------
CSFB MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 2003-AR15
OFFICER'S CERTIFICATE
I, Michael L. Parker, a duly elected and acting officer of Washington
Mutual Mortgage Securities Corp. (the "Servicer"), certify to Bank One, National
Association (the "Trustee"), Chase Manhattan Mortgage Corporation (the "Master
Servicer") and Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor") and each Person, if any, who "controls" the Depositor within the
meaning of the Securities Act of 1933, as amended, and their respective officers
and directors, with respect to the calendar year immediately preceding the date
of this certificate (the "Relevant Year"), as follows:
1. For purposes of this certificate, "Relavant Information" means the
information in the certificate (the "Annual Compliance Certificate") provided
pursuant to Section 3.16 of the Pooling and Servicing Agreement dated as of May
1, 2003 (the "Pooling and Servicing Agreement") by and among the Depositor, as
depositor, the Servicer, as master servicer, and Bank One, National Association,
as trustee, and in the accountant's statement (the "Accountant's Statement")
provided pursuant to Section 3.17 of the Pooling and Servicing Agreement, for
the Relevant Year, and the information in all servicing reports provided by the
Servicer pursuant to Section 4.04 of the Pooling and Servicing Agreement during
the Relevant Year. Based on my knowledge, the Relevant Information, taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein which is necessary to make the
statements therein, in light of the circumstances under which such statements
were made, not misleading as of the last day of the Relevant Year.
2. The Relevant Information has been provided to those Persons entitled to
receive it.
3. I am responsible for reviewing the activities performed by the Servicer
under the Pooling and Servicing Agreement during the Relevant Year. Based upon
review required by the Pooling and Servicing Agreement and except as disclosed
in the Annual Compliance Certificate or the Accountants' Statement, to the best
of my knowledge, the Servicer has fulfilled its obligations under the Pooling
and Servicing Agreement throughout the Relavant Year.
DATED: March 15, 2004
By: /s/ Michael L. Parker
--------------------------
Name: Michael L. Parker
Title: President and COO
-14-
Washington Mutual Bank, F.A. ("WAMU")
OFFICER'S CERTIFICATE
RE:Credit Suisse First Boston Mortgage Securities Corp.
CSFB Mortgage-Backed Certificates, Series 2003-AR15
Pursuant to Article III of the Pooling and Servicing Agreement, the
undersigned Officer of WAMU certifies to the following:
1. A review of the activities of such Servicer during the preceding
calendar year and of the performance of such Servicer under this Agreement has
been made under such officer's supervision, and
2. To the best of such officer's knowledge, based on such review, such
Servicer has fulfilled all of its obligations under this Agreement throughout
such year, or, if there has been a default in the fulfillment of any such
obligaton, specifying each such default known to such officer and the nature and
status therof and the action being taken by such Servicer to cure such default.
WAMU
Certified By: /s/ Diane L. Ludlow Dated: March 15, 2004
--------------------
Diane L. Ludlow
Sr. Vice President
-15-
(officer's certification)
Fairbanks Capital Corp.
3815 South West Temple
Salt Lake City, Utah 84115-4412
P.O. Box 65250
Salt Lake City, Utah 84165-0250
telephone (801) 293-1883
fax (801) 293-1297
Agreement: See Schedule of Agreements
Dated: See Attached Schedule
ANNUAL STATEMENT AS TO COMPLIANCE
In accordance with applicable section in each of the Pooling and Servicing
Agreements specified:
i. a review of the activities of the Servicer during the year ended December
31, 2003 and of performance under this Agreement has been made under such
officers' supervision; and
ii. to the best of such officers' knowledge, based on such review, the
Servicer has fulfilled all of its obligations under this Agreement
throughout such year.
February 6, 2004
/s/ Matt Hollingsworth
----------------------------
Matt Hollingsworth
Chief Operating Officer
Fairbanks Capital Corp.
SCHEDULE OF AGREEMENTS
-16-
Ocwen Federal Bank FSB, as Servicer
- ---------------------------------------
Ocwen Federal Bank FSB
1675 Palm Beach Lakes Boulevard
West Palm Beach, FL 33401
P.O. Box 24737
West Palm Beach, FL 33416-4737
OCWEN FEDERAL BANK FSB
Compliance Certification Year ended December 31, 2003
CSFB Mtg-Backed PT Certificates, Series 2003-AR15
The undersigned Officer of Ocwen Federal Bank FSB, (the "Serivcer") confirms
that (i) a review of the activities of the Servicer during the calendar year
ending on December 31, 2003 and of the performance of the Servicer under the
Pooling and Servicing Agreement for Mortgage-Backed Pass-Through Certificates
Series 2003-AR15 dated May 1, 2003 (the "Servicing Agreement") has been made
under his supervision. Except as noted on the Management Assertion on Compliance
with USAP, to the best of the undersigned Officers knowledge, bason such review,
the Servicer has fulfilled all of its obligation as set forth in the Servicing
Agreement.
By: /s/ Scott W. Anderson Dated: March 12, 2004
- ----------------------------------------
Scott W. Anderson, Senior Vice President
-17-