Fitch Affirms Ocwen's 'RPS2' & 'RSS2' Resi Servicer Rtgs.
NEW YORK--(BUSINESS WIRE)--Oct. 18, 2002
Fitch Ratings Fitch Ratings
An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. 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 Long-Term Debt
Loans and financial obligations lasting over one year.
For example debts obligations such as bonds and notes which have maturities greater than one year would be considered 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 Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. , 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 cred·it·a·ble
1. Deserving of often limited praise or commendation: The student made a creditable effort on the essay.
2. Worthy of belief: a creditable story. record of performance in resolving a high percentage of delinquent loans prior to foreclosure foreclosure
Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. 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 pro·fi·cient
Having or marked by an advanced degree of competence, as in an art, vocation, profession, or branch of learning.
An expert; an adept. 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 Subprime Loan
A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans.
Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. . 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 This article or section is in need of attention from an expert on the subject.
Please help recruit one or [ improve this article] yourself. See the talk page for details. , dated August 3, 1999, available on Fitch's web site at 'www.fitchratings.com'.