NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned Ocwen Loan Servicing, LLC Small Balance Commercial Servicer (OLSSB) ratings as follows:
--Small Balance Primary Servicer Rating 'SBPS2-'; Outlook Negative;
--Small Balance Special servicer rating 'SBSS2-'; Outlook Negative.
The assigned servicer ratings reflect OLSSB's highly integrated technology environment, robust investor and borrower website, and existing small balance management experience. The company has indicated its strategic growth objectives for this product are mainly through acquisitions of servicing platforms, special servicing and new segment opportunities.
Ocwen indicated its intention to keep the small balance commercial servicing platform operating out of its current Houston, TX location. However, the ratings also take into consideration Fitch's concerns regarding the continuation of the small balance platform and any turnover of experienced staff at the Houston TX location. Fitch also rates Ocwen Loan Servicing as a commercial servicer, primarily out of its West Palm Beach FL location. Fitch currently rates the commercial platform as 'CSS2-', and believes that this group will be used to leverage resources for the small balance servicing portfolio as needed.
Ocwen acquired Litton Loan Servicing residential operations effective September 2011. The small balance commercial portfolio completed the service transfer as of Dec. 31, 2011. As of that date, OLSSB serviced 1,874 small balance commercial loans totaling $586 million which is further broken down as 1,230 primary serviced loans for $399 million and 644 special serviced loans totaling $186 million.
The Negative Outlook indicates concerns regarding the future viability of the small balance commercial platform, which currently consists of a relatively small portfolio, and the future ability of acquiring similar assets.
Ocwen Loan Servicing, LLC is also a Fitch-rated Residential Servicer, established in 1988 with headquarters in Atlanta, GA, and servicing locations in West Palm Beach and Orlando, FL and global servicing centers in Bangalore and Mumbai, India and Montevideo, Uruguay.
Additional information is available at 'www.fitchratings.com'.The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'U.S. Commercial Mortgage Servicer Rating Criteria' (Jan. 31, 2011);
--'Global Rating Criteria for Structured Finance Servicers' (Aug. 13, 2010).
Applicable Criteria and Related Research:
U.S. Commercial Mortgage Servicer Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005
Global Rating Criteria for Structured Finance Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305
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