Moody’s: Ocwen’s Transfer Proposal Wouldn’t Hurt Ratings

Ocwen Loan Servicing LLC's proposal to transfer loans from Litton Loan Servicing LP's platform onto its own platform does not, in and of itself, facilitate the need for a ratings action, Moody's Investors Service says.

Moody's says it will not downgrade, withdraw or place on review for possible downgrade the ratings on tranches issued by 44 transactions serviced by Litton Loan Servicing LP solely as a result of Ocwen's proposal.

Ocwen's acquisition of Litton from The Goldman Sachs Group Inc., announced in June, closed Sept. 1. The company has acquired Litton's entire servicing platform and plans to service Litton's entire servicing portfolio under Ocwen's servicing strategy.

According to Moody's, the proposed transfer would not have an adverse credit effect on the current outstanding Moody's ratings of securities issued by the 44 transactions. Moody's did not express an opinion as to whether this action had, or could have, other non-credit-related effects that investors may or may not view positively.

LEAVE A REPLY

Please enter your comment!
Please enter your name here