Fitch Affirms Ocwen's Resi and Special Servicer Ratings.

NEW YORK -- Fitch Ratings affirms Ocwen Financial Corporation's (Ocwen) 'RPS2' residential primary servicer rating for subprime mortgages and 'RSS2' residential special servicer rating. The ratings are based on Ocwen's solid capabilities in loan administration and default management, comprehensive servicing technology, established training programs, and effectiveness in servicing nonperforming loans and liquidating real estate owned assets.

On June 30, 2005, Ocwen completed its 'de-banking' initiative of Ocwen Federal Bank FSB (OFB) with the sale of its deposits and the surrender of its thrift charter. The remaining assets and liabilities of OFB were assumed by Ocwen Loan Servicing LLC (OLS), which now conducts all of the core business activities formerly conducted by OFB. As a result, Ocwen is no longer regulated by the Office of Thrift Supervision. According to management, OLS is licensed in all 50 states and the District of Columbia to conduct servicing and other business activities.

As of Aug. 31, 2005, Ocwen serviced over 326,000 loans totaling over $36 billion in outstanding principal balance, of which $31.8 billion represented subprime loans and the balance represented conforming, Alt-A, and high loan-to-value loans. Ocwen currently has four servicing sites located in West Palm Beach and Orlando, FL, and Bangalore and Mumbai, India. In addition to performing an on-site review of Ocwen's Florida facilities, Fitch also conducted an on-site review of Ocwen's Bangalore and Mumbai operations and determined that all sites were operating in accordance with industry standards.

Over the last year, Ocwen has continued its efforts to resolve its outstanding litigation. To date, the company has been successful in resolving some of the lawsuits and continues to work to have the remaining cases dismissed, consolidated, or moved to more favorable venues. Fitch takes these charges very seriously and is concerned about the types of issues that have been alleged by consumers and, as a result, will continue to closely monitor the company's legal situation in order to evaluate any potential impact on Ocwen's loan servicing and operational capabilities. If at any time Fitch determines that Ocwen no longer meets the requirements of a servicer at its current rating level, Fitch will take immediate and definitive action with regard to Ocwen's servicer ratings.

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 'Residential Mortgage Servicer Ratings', dated Feb. 21, 2003 and available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.