Specialist Securities Notice

RNS Number:6468D
Residential Mortgage Secs No.17 PLC
26 May 2006



25 May 2006

Residential Mortgage Securities 17 plc - Formal Notice for Specialist Securities

Residential Mortgage Securities 17 plc announces that a reserve fund drawing of
#1,450,000, equating to 5.5% of the maximum Reserve Fund Required Amount, set
out in the offering circular, will occur based on the quarterly performance of
the underlying portfolio during the quarter ended 30 April 2006.

Summary of Performance:

In the November 2005 investor report, we drew attention to the reserve fund
drawing for RMS17 and the relevant contributing factors. The reserve fund
drawing in November 2005 was #375,000 or 1.4% of the fully funded reserve fund
amount of #26.52m.

In the February 2006 investor report we noted that improved excess spread
resulted in #490,000 being added to the reserve fund topping it up from the
previous drawing.

Performance this Quarter:

You will note in the attached investor report that the reserve fund for RMS17
will be drawn on the interest payment date in May 2006 by #1,450,000 or 5.5% of
the fully funded reserve fund amount of #26.52m. The annualised excess spread
(before losses) for this period is 0.9932%.

The total losses for this quarter have increased by 28.15% on last quarter.  
However arrears levels for 3+ months have decreased by 1.24% over the same
period. Of all sold repossessions during the quarter, 69.6% of those cases by
number resulted in a loss.

A comparison of key statistics between recent quarters is provided in the table
below:

                                   All Losses  

RMS17                     May-06        Feb-06           Nov-05         Aug-05

Total Losses            #2,647,534     #2,066,027        #651,140       #340,117

Weighted Average Loss 
   Severity                21.20%        15.59%           12.19%          9.43%

% of Losses in London & 
  South East               82.90%        88.73%           86.89%         94.89%

Total Sold Repossessions      79            92               34            24
(Sold Repossessions 
  resulting in a Loss)       (55)          (52)             (22)          (13)
                                                   

Credit Enhancement:    

                                        RMS17 (May-06)
                                   
                                   Original*                 Current
AAA                                  15.11%                  29.63%
AA                                    9.07%                  18.38%
A                                     5.87%                  12.42%
BBB                                   3.12%                   7.30%     

* Calculated including maximum reserve fund required amount
 

In line with our recent communications, we had noted that there were a number of
identified serious arrears cases which were yet to work their way through to
either redemption or repossession and sale. Innovations within our customer
arrears and repossession management processes, along with changes to our
litigation strategy, are improving our results as we work-out these cases.

In the five months to 30 April 2006, our analysis across the portfolio has shown
losses have increased although loss severities have remained stable. This is in
line with management expectations and is a reflection of the uplift in arrears
seen in early 2005.

The most recent quarterly investor reports for our RMS15 and RMS16
transactions have shown a stabilisation and decline in losses and an increase in
annualised excess spread resulting in the respective reserve funds being 100%
replenished.

We will of course be continuing to monitor the performance of these transactions
closely.

As per our original expectations, we continue to expect (i) the reserve fund for
RMS17 to be fully topped up at the time the transaction is called, and (ii)
investors will receive full and timely payment of all principal and interest.

For further information please contact:


Mark Wilten     020 7297 7800

John Maltby     020 7297 7800





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