**Exhibit 99.1**

 

**Report on Management's Assertion on Compliance with Minimum ServicingStandards Set Forth in the***Uniform Single Attestation Program for Mortgage Bankers*

 

**Report of Independent Accountants**

 

 

The Board of DirectorsAames Financial Corporation

 

We have examined management's assertion, included in theaccompanying report titled *Report of Management,* that Aames FinancialCorporation (the Company) complied with the minimum servicing standards setforth in the Mortgage Bankers Association of America's *Uniform SingleAttestation Program for Mortgage Bankers* (USAP) during the year****endedJune 30, 2002. Management is responsible for the Company's compliance withthose requirements. Our responsibility is to express an opinion on management'sassertions about the Company's compliance based on our examination.

Our examination was made in accordance with attestationstandards established by the American Institute of Certified Public Accountantsand, accordingly, included examining, on a test basis, evidence about theCompany's compliance with those requirements and performing such otherprocedures as we considered necessary in the circumstances. We believe that ourexamination provides a reasonable basis for our opinion. Our examination doesnot provide a legal determination on the Company's compliance with specifiedrequirements.

In our opinion,****management's assertion that theCompany complied with the aforementioned requirements during the year ended June30, 2002, is fairly stated, in all material respects.

This report is intended solely for the information and use of the Board ofDirectors, audit committee, and the Company's private investors and is notintended to be and should not be used by anyone other than these specifiedparties.

 

/s/ ERNST & YOUNG LLPLos Angeles, CaliforniaAugust 30, 2002

 

 

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August 30, 2002

 

 

**Report of Management on Compliance with the Minimum ServicingStandardsSet Forth in the***Uniform Single Attestation Program forMortgage Bankers*

 

We, as members of management of Aames Financial Corporation(the Company), are responsible for complying with the minimum servicingstandards as set forth in the Mortgage Bankers Association of America's *UniformSingle Attestation Program for Mortgage Bankers* ("USAP"). We arealso responsible for establishing and maintaining effective internal controlover compliance with these standards. We have performed an evaluation of theCompany's compliance with the minimum servicing standards as set forth in theUSAP as of June 30, 2002, and for the year then ended. Based on this evaluation,we assert that during the year ended June 30, 2002, the Company complied, in allmaterial respects, with the minimum servicing standards set forth in the USAP.

As of and for the same period, the Company had in effect afidelity bond in the amount of $10,000,000.00 and an errors and omissions policyin the amount of $20,000,000.00.

|  | /s/ A.Jay Meyerson                                                                   |     |
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|  | A. Jay Meyerson      Chief Executive Officer                                         |     |
|  |                     |     |
|  | /s/ Ronald J. Nicolas, Jr.                                                           |     |
|  | Ronald J. Nicolas, Jr.      Executive Vice President, Chief Financial Officer        |                    |
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|  | /s/ Daniel H. Relf                                                                   |                    |
|  | Daniel H. Relf      Executive Vice President, Loan Servicing                         |                    |
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