Fitch Ratings has downgraded and withdrawn Litton Loan Servicing LLP's (Litton) U.S. residential mortgage servicer ratings as follows:
--Primary servicer rating for Alt-A product to 'RPS3' from 'RPS1';
--Primary servicer rating for subprime product to 'RPS3' from 'RPS1';
--Primary specialty servicer rating for manufactured housing product to 'RPS3' from 'RPS2';
--Primary specialty servicer rating for closed-end second liens product to 'RPS3' from 'RPS1';
--Residential special servicer rating to 'RSS3' from 'RSS1'.
The rating downgrades are based on the acquisition of Litton's residential servicing platform and portfolio by Ocwen Financial Corporation (Ocwen). The rating withdrawals are based on insufficient information regarding the Litton platform being provided to Fitch to maintain the ratings following the acquisition of Litton by Ocwen. The ratings were placed on Rating Watch Negative in June 2011 following the announcement that Litton was being acquired by Ocwen. The ratings being withdrawn had been determined in accordance with Fitch's criteria 'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria' and 'Global Rating Criteria for Structured Finance Servicers'.
Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria,' dated Jan. 31, 2011, and 'Global Rating Criteria for Structured Finance Servicers,' dated Aug. 16, 2010, both available on the Fitch's Web site at www.fitchratings.com.
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:
--'Global Rating Criteria for Structured Finance Servicers' (Aug. 13, 2010);
--'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating' (Jan. 31, 2011).
Applicable Criteria and Related Research:
U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=600065
Global Rating Criteria for Structured Finance Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305
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Fitch Ratings
Sandro Scenga, +1-212-908-0278
Media Relations,
New York
sandro.scenga@fitchratings.com
or
Primary
Analyst:
Thomas Crowe, +1-212-908-0227
Senior Director
Fitch,
Inc.
One State Street Plaza
New York, NY 10004
or
Secondary
Analyst:
Michael Laidlaw, +1-212-908-0251
Director
or
Committee
Chairperson:
Grant Bailey, +1-212-908-0544
Managing Director