Global Header | Moody's
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action - Servicer:

MOODY'S AFFIRMS HOMECOMINGS' RATINGS OF SQ1 AS PRIMARY SERVICER OF PRIME/ALT-A, AND SECOND LIEN RESIDENTIAL MORTGAGE LOANS AND ASSIGNS HOMECOMINGS AN SQ1 RATING AS PRIMARY SERVICER OF HLTV RESIDENTIAL MORTGAGE LOANS

28 Feb 2005
MOODY'S AFFIRMS HOMECOMINGS' RATINGS OF SQ1 AS PRIMARY SERVICER OF PRIME/ALT-A, AND SECOND LIEN RESIDENTIAL MORTGAGE LOANS AND ASSIGNS HOMECOMINGS AN SQ1 RATING AS PRIMARY SERVICER OF HLTV RESIDENTIAL MORTGAGE LOANS

US RESIDENTIAL MORTGAGE SERVICER RATING ACTIONS

New York, February 28, 2005 -- Moody's Investors Service has affirmed Homecomings Financial Network, Inc.'s ("Homecomings") SQ1 ratings, Moody's highest rating, as Primary Servicer of prime/Alt-A, and second lien residential mortgage loans and assigned an SQ1 rating as Primary Servicer of HLTV residential mortgage loans. Moody's ratings are based on strong collection results, strong loss mitigation for prime/Alt-A and second lien loans, above average loss mitigation for HLTV loans, above average foreclosure and REO timeline management for prime/Alt-A loans, and strong servicer stability.

Homecomings is a subsidiary of GMAC-RFC. Homecomings performs primary and special servicing for GMAC-RFC, which is engaged in purchasing and securitizing residential mortgage loans. Homecomings' servicing portfolio totaled approximately $84 billion as of December 31, 2004. The portfolio includes prime, Alt-A, subprime, second lien, and HLTV loans. Homecomings operates three servicing centers in Dallas, Texas, San Diego, California, and Blue Bell, Pennsylvania. A portion of its first lien (pre-30 days delinquent) collection calls are outsourced to a third party vendor.

Homecomings' prime/Alt-A and second lien collection abilities and loss mitigation results are viewed by Moody's as strong*. Of the prime/Alt-A loans that began a 12-month static pool analysis as 30 days delinquent, 69% improved in terms of delinquency while 64% of the loans that began the static pool analysis as 60 days delinquent improved in terms of delinquency. Sixty-three percent (63%) of the loans that began the static pool analysis as 90+ days delinquent or in bankruptcy (excluding REO) were cured or became cash flowing. Of the second lien loans that began a 12-month static pool analysis as 30 days delinquent, 64% improved in terms of delinquency while 56% of the loans that began the static pool as 60 days delinquent improved in terms of delinquency. Fifty-six percent (56%) of the loans that began the static pool analysis as 90+ days delinquent or in bankruptcy were cured or became cash flowing. Homecomings' HLTV collection abilities are viewed by Moody's as strong and loss mitigation results as above average. Of the HLTV loans that began a 12-month static pool analysis as 30 days delinquent, 48% improved in terms of delinquency while 43% of the loans that started in the static pool as 60 days delinquent improved in terms of delinquency. Forty-five percent (45%) of the loans that began the static pool analysis as 90+ days delinquent or in bankruptcy were cured or became cash flowing.

Homecomings has increased the flexibility of its repayment plans, which has positively impacted the resolution rate of their seriously delinquent loans. In addition, Homecomings has been innovative in its approach to working with delinquent homeowners. For example, Homecomings initiated the Home Ownership Preservation Enterprise, a partnership between local government, community housing development organizations, and servicers, to facilitate communication and leverage resources when working with delinquent homeowners. Homecomings also provides job search assistance, free credit counseling and educational programs for its delinquent homeowners. In Moody's opinion, Homecomings' homeowner-focused initiatives are proactive measures that have been taken to help cure delinquent loans.

Moody's considers Homecomings' prime/Alt-A foreclosure and REO timeline management to be above average*. Moody's evaluates servicers' timeline management in three main areas:

1. Missed Payment to Foreclosure Referral

On average, Homecomings referred prime/Alt-A loans to foreclosure at the 99th day of delinquency, which includes delays experienced prior to foreclosure referral. Over the past two years, predatory servicing concerns have led to additional pre-foreclosure activities to ensure the thoroughness of collection and loss mitigation. This has increased the duration of the period from the missed payment date to the foreclosure referral date for some residential mortgage servicers. In response to these concerns, foreclosure referrals are now more common after the 90th day of delinquency.

2. Foreclosure Referral to Sheriff Sale

On average, Homecomings completed sheriff sale 182 days after the referral date. The duration of the foreclosure sale is significantly influenced by property location, and other delays primarily outside servicers' control, such as borrower bankruptcy. The state in which the property is located is a determinant of whether the foreclosure process is carried out under a judicial or non-judicial process. The principal difference is that the judicial procedure requires a court to intervene, extending the duration of the foreclosure process. Moody's neutralizes the impact of location on a servicer's ability to manage the foreclosure process by measuring a servicers' foreclosure timelines relative to a state-weighted Freddie Mac timeline. Homecomings completed the foreclosure sale 45 days beyond the state-weighted Freddie Mac timeline. Forty-four percent (44%) of foreclosures had delays beyond Homecomings' control. In analyzing a servicer's foreclosure timeline, Moody's evaluates loans with and without delays, the proportion of loans with delays, and their subsequent effect on timeline performance.

3. REO Acquisition to Disposition, Net of the Redemption Period

Homecomings liquidated its REO in 219 days, on average. The liquidation period is influenced by the level of REO properties undergoing eviction proceedings, as well as the level of REO properties undergoing refurbishment efforts. Forty percent (40%) of the REO properties included in Moody's analysis experienced delays due to eviction.

Moody's views Homecomings servicing stability as strong. Homecomings is a wholly-owned subsidiary of GMAC-RFC. The ultimate holding companies of GMAC-RFC, General Motors Acceptance Corporation and General Motors Corporation, are rated Baa1 and Baa2 for senior unsecured debt, respectively.

GMAC is considering a restructuring of its residential mortgage operations within a newly formed holding company to be named Residential Capital Corporation ("RCC"). GMAC's two residential mortgage operations, GMAC Mortgage Corporation and Residential Funding Corporation, would become wholly owned subsidiaries of RCC. RCC would seek a stand-alone credit rating based on its separate capital structure and corporate governance protections.

Moody's SQ ratings represent its view of a loan servicer's ability to prevent or mitigate mortgage pool losses across changing markets. The rating scale ranges from SQ1 (strong) to SQ5 (weak). Moody's servicer ratings are differentiated in the marketplace by focusing on performance measurements. Every rating incorporates an assessment of delinquency transition rates, foreclosure timeline management, loan cure rates, recoveries, loan resolution outcomes and REO management - all critical indicators of a servicer's ability to get maximum returns from mortgage portfolios.

Moody's servicer ratings also consider the company's ability to maintain its focus on high quality servicing in an economic downturn. Servicing operations can be stressed by increasing the number of delinquent loans while at the same time increasing the need for liquidity. Ratings are assigned with the understanding that a servicer's effectiveness can have a strong impact - either positive or negative - on credit enhancement levels, particularly with lower rated securities. For this reason, Moody's conducts a formal re-evaluation of its servicer ratings annually.

*Please see "2004 Review and 2005 Outlook: US Servicer Ratings" January 12, 2005 for detailed performance comparisons for residential mortgage servicers

New York
Warren Kornfeld
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Fei Fern Wang
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Global Footer | Moody's