Fitch Affirms Ocwen's 'RPS2' & 'RSS2' Resi Servicer Rtgs.
NEW YORK--(BUSINESS WIRE)--Oct. 18, 2002
Fitch Ratings affirms Ocwen Financial Corporation's (Ocwen), 'RPS2' residential primary servicer rating for subprime product, and affirms its 'RSS2' residential special servicer rating, with Rating Outlook remaining Negative. Fitch's Financial Institutions Group originally released a change in the firm's financial ratings on November 29, 2001 ('B' for long-term debt, Rating Outlook Negative) which have remained the same to date for Ocwen. (For more information, please refer to Fitch's web site at www.fitchratings.com.) Those Fitch financial ratings of Ocwen entities directly affect Ocwen's residential mortgage servicer ratings.
Ocwen's affirmed 'RPS2' rating for subprime product is based upon the company's proven capabilities in loan servicing, particularly in call center operations, investor accounting and reporting, cash management controls, customer service and document controls, and effective collection practices. The 'RPS2' rating also reflects Ocwen's highly experienced and progressive servicing management team, its comprehensive training programs, dynamic technology platform, and the successful transition of many servicing functions to Ocwen's new subsidiary in India.
The affirmed 'RSS2' rating for special servicer is based upon the firm's creditable record of performance in resolving a high percentage of delinquent loans prior to foreclosure completion. Ocwen has developed the technology, processes, and expertise to consistently absorb seasoned delinquent accounts and then reduce default timelines and losses. Ocwen has developed many effective proprietary servicing applications, which, in combination with its well-trained staff and its proficient default management team, enables the firm to competently meet the challenges of servicing a growing, diverse, subprime portfolio. Fitch will continue to monitor the company's financial situation to evaluate any potential impact on Ocwen's loan servicing and operational capabilities.
As of July 31, 2002, Ocwen serviced over 322,000 loans totaling $27.97 billion in outstanding principal balance, of which $25.18 billion represented subprime loans. Ocwen continues to grow its servicing portfolio via numerous bulk and flow servicing acquisitions.
Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on the review and rating process for servicers, see Fitch Research on "Rating Residential Loan Servicers, dated August 3, 1999, available on Fitch's web site at 'www.fitchratings.com'.
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|Date:||Oct 18, 2002|
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