Fitch reviewing OneWest/Ocwen loan servicing transfers
Fitch Ratings said this week it's looking into a deal to transfer thousands of loans currently serviced by OneWest Bank to Ocwen Financial Corp. (OCN) to see what effect, if any, the proposed MSR transfer will have on underlying RMBS ratings involved.
HousingWire first reported on the massive MSR deal in June, totallying $78 billion in unpaid principal balance, which led to massive layoffs at the bank's Austin, Tex.-based loan servicing headquarters.
The ratings agency has been asked to provide confirmation letters on a list of roughly 150 different transactions rated by Fitch and included in the transfer, Fitch said in a statement.
Confirmation letters provide an advance look at any likely ratings action given a proposed scenario.
"The ratings confirmation, if issued, will only address the effect of transferring the servicing from IndyMac to Ocwen," Fitch said. "It will not address whether the transfer is permitted by the terms of the transaction documents, nor will it address whether it is in the best interests of, or prejudicial to, some or all of the holders of the securities."
Fitch said the servicing transfer is expected to be complete in November.