twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.

Subprime Servicers See Ratings Upgrades and Downgrades

Action taken on ratings for Ocwen, Specialized Loan Servicing

Dec. 21, 2011

By staff

Both Ocwen Financial Corp. and Specialized Loan Servicing LLC saw action taken on their respective subprime servicer ratings -- though one was upgraded while the other was downgraded.

West Palm Beach, Fla.-based Ocwen has recently expanded its servicing portfolio with the acquisition of two mortgage servicers. Last year it acquired HomEq Servicing from Barclays PLC. HomEq serviced around $28 billion at the time.

Ocwen acquired Litton Loan Servicing LP from Goldman Sachs three months ago. That deal increased its servicing portfolio by around $41 billion.

During the next three months, Ocwen plans to close on the acquisition of Saxon Mortgage Services Inc. from Morgan Stanley. The transaction will add another $27 billion to its mortgage servicing portfolio.

In addition, Fitch Ratings reports that Ocwen is in the process of making an "acquisition of a significant subprime portfolio from a major bank."

After Ocwen completes the pending acquisitions, its mortgage servicing portfolio -- which stood at 448,000 loans for $68.4 billion as of June 30 -- will total around 910,000 loans for $145 billion. Based on a third-quarter analysis of servicing portfolios by Mortgage Daily, the upcoming acquisitions will leave Ocwen as the 10th-biggest U.S. mortgage servicer.

But all the growth is not necessarily a good thing, according to Fitch.

"While these acquisitions have increased the company's economies of scale and presence in the subprime servicing sector, Fitch believes that they have also introduced the potential for material integration risk associated with portfolio boarding and rapid platform expansion," the New York based ratings agency stated.

So Fitch cut Ocwen's primary servicer rating for subprime mortgages to RPS3 from RPS2. Ratings range the highest quality servicer at RPS1+ to the worst-rated servicers at RPS5-.

Fitch additionally downgraded the special servicer rating to RSS3 from RSS2.

"Servicers rated in the '3' category demonstrate proficiency in overall servicing ability," the downgrade notice stated.

The ratings action was also prompted by Fitch's concern about moving the servicing off shore from the seasoned staff at the acquired companies. Around 80 percent of Ocwen's staff is off shore.

Fitch also cited heightened regulatory scrutiny for the overall sector and expressed concern about the industry's ability to maintain high performance standards while addressing the rising cost of servicing and changes to industry practices. Fitch sees an increased operational risk profile for Ocwen.

Specialized Loan Servicing, meanwhile, saw its subprime servicer quality rating upgraded to SQ3+ from SQ3 by Moody's Investors Service.

Specialized also saw its second lien servicer rating improved to SQ2- from SQ3.

"The rating action is driven primarily by the improvement in performance
shown by Specialized Loan Servicing compared to peers in loss mitigation and second lien collections, particularly with the use of modifications," Moody's explained.

Also contributing to the upgrade was the Nov. 30 acquisition of Specialized by Computershare Limited from Shinsei Bank Limited.

Denver-based Specialized employed 618 associates as of Oct. 31. Its mortgage servicing portfolio totaled 214,000 loans for $16.1 billion.

next story

back to current headlines

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders