Nov 14 - Standard & Poor's Ratings Services today placed its ABOVE AVERAGE
rankings on Ocwen Loan Servicing LLC (Ocwen) on CreditWatch negative as a
residential mortgage subprime, special, and subordinate-lien servicer. The
outlook was stable prior to the CreditWatch placements.
We placed the rankings on CreditWatch negative due to Ocwen's recent purchase,
pending regulatory approval, of GMAC Mortgage LLC (GMACM), Residential Capital
LLC's (ResCap's) mortgage loan servicing unit. ResCap is the residential
mortgage subsidiary of Ally Financial Inc. This purchase follows Ocwen's Oct.
3, 2012, announced purchase of Homeward Residential Inc., another large
mortgage servicer. As of Sept. 30, 2012, Ocwen serviced 789,000 accounts, and
as a result of these acquisitions, its portfolio will approximately triple in
size. We want to assess the company's ability to properly integrate and
service such a large number of accounts.
On May 14, 2012, Standard & Poor's lowered its residential prime, subprime,
special, and subordinate-lien mortgage loan servicer rankings on GMACM to
AVERAGE from ABOVE AVERAGE and assigned a negative outlook to the rankings. We
also affirmed our ABOVE AVERAGE master servicer ranking on GMAC Residential
Funding Co. LLC, which is a subsidiary of ResCap, on Dec. 5, 2011.
Standard & Poor's will continue to monitor Ocwen's acquisition progress and
take ranking actions as appropriate based on our assessment of the impact that
these acquisitions will have on the company's servicing operations.
RELATED CRITERIA AND RESEARCH
-- Ocwen Loan Servicing Residential Servicer Rankings Not Affected By
Acquisition Plan, Oct. 16, 2012
-- Ocwen Loan Servicing Outlook Revised To Stable; Residential Servicer
Rankings Affirmed, Oct. 2, 2012
-- Servicer Evaluation: Ocwen Loan Servicing LLC, Dec. 30, 2011
-- Revised Criteria For Including RMBS, CMBS, And ABS Servicers On
Standard & Poor's Select Servicer List, April 16, 2009
-- Servicer Evaluation Ranking Criteria: U.S., Sept. 21, 2004
-- Select Servicer List