New York, October 21, 2011 -- Moody's Investors Service stated today that the ratings on tranches issued
by 77 transactions serviced by Litton Loan Servicing, LP were not
being downgraded, withdrawn or placed on review for possible downgrade,
solely as a result of Ocwen Loan Servicing, LLC's proposal
to transfer servicing to Ocwen's own servicing platform (SQ2,
on review for possible downgrade) from Litton Loan Servicing, LP's
platform (SQ2+, on review for possible downgrade). On
June 5, 2011, Ocwen Financial and The Goldman Sachs Group,
Inc. entered into a Purchase Agreement in which Ocwen agreed to
acquire the loans and servicing platform of Litton Loan Servicing LP.
The transaction closed on September 1, 2011.
Ocwen Loan Servicing, LLC requested that Moody's provide its opinion
to it as to whether the ratings on the Moody's-rated securities
issued in the affected transactions would be downgraded, withdrawn
or placed on review for possible downgrade as a result of its proposal
to transfer servicing from Litton.
Moody's believed, as of the above date, that the proposed
transfer of servicing to Ocwen Loan Servicing, LLC in and of itself
would not have an adverse credit effect on the current outstanding Moody's
ratings of securities issued by the below transactions. Moody's
did not express an opinion as to whether this action had, or could
have, other non credit-related effects that investors may
or may not view positively.
In assessing the credit impact of the transfer, Moody's compared
the differences in servicing practices between Litton and Ocwen,
and evaluated the effect on short term cash flows to the trust as well
as ultimate pool losses.
The methodologies used in this rating were "Moody's Approach
to Rating US Residential Mortgage-Backed Securities" published
in December 2008, and "Moody's Approach to Rating Residential
Mortgage Servicers" published in January 2001. Please see
the Credit Policy page on www.moodys.com for a copy of these
methodologies.
Other factors used in this rating are described in "Moody's
Approach to Rating Structured Finance Securities in Default" published
in November 2009, and "Updated Moody's Servicer Quality
Rating Scale and Definitions" published in May 2005.
List of affected transactions:
ABFC Asset-Backed Certificates, Series 2006-HE1
ACE Securities Corp. Home Equity Loan Trust, Series 2006-FM1
Asset Backed Securities Corporation Home Equity Loan Trust 2003-HE4
Asset Backed Securities Corporation Home Equity Loan Trust 2003-HE5
Asset Backed Securities Corporation Home Equity Loan Trust 2003-HE7
Asset Backed Securities Corporation Home Equity Loan Trust 2004-HE10
Asset Backed Securities Corporation Home Equity Loan Trust 2004-HE4
C-BASS Mortgage Loan Asset-Backed Certificates, Series
2006-SC1
C-BASS Mortgage Loan Asset-Backed Certificates, Series
2007-MX1
CWABS Asset-Backed Certificates Trust 2005-10
CWABS Asset-Backed Certificates Trust 2005-15
CWABS Asset-Backed Certificates Trust 2005-8
CWABS, Inc. Asset-Backed Certificates, Series
2002-5
Equity One Mortgage Pass-Through Trust 2002-4
Equity One Mortgage Pass-Through Trust 2002-5
Finance America Mortgage Loan Trust 2003-1
Finance America Mortgage Loan Trust 2004-3
Fremont Home Loan Trust 2002-1
Fremont Home Loan Trust 2002-2
Fremont Home Loan Trust 2003-1
Fremont Home Loan Trust 2003-A
Fremont Home Loan Trust 2003-B
Fremont Home Loan Trust 2004-1
Fremont Home Loan Trust 2004-2
Fremont Home Loan Trust 2004-4
Fremont Home Loan Trust 2004-B
Fremont Home Loan Trust 2005-1
Fremont Home Loan Trust 2005-2
GE-WMC Asset-Backed Pass-Through Certificates,
Series 2005-1
GE-WMC Asset-Backed Pass-Through Certificates,
Series 2006-1
GSAMP Trust 2006-FM3
GSAMP Trust 2007-FM1
GSAMP Trust 2007-FM2
HomeGold Home Equity Loan Trust 1999-1
Long Beach Mortgage Loan Trust 2004-3
Meritage Mortgage Loan Trust 2003-1
New Century Home Equity Loan Trust, Series 2003-A
Option One Mortgage Loan Trust 2002-5
Park Place Securities, Inc., Asset-Backed Pass-Through
Certificates, Series 2005-WLL1
Provident Bank Home Equity Loan Trust 1998-4
Provident Bank Home Equity Loan Trust 1999-3
Provident Bank Home Equity Loan Trust 2000-1
Provident Bank Home Equity Loan Trust 2000-2
RAAC Series 2005-RP1 Trust
RAAC Series 2005-RP2 Trust
RAAC Series 2005-RP3 Trust
RAAC Series 2005-SP2 Trust
RAAC Series 2006-RP3 Trust
RAAC Series 2006-SP4 Trust
RAAC Series 2007-RP1 Trust
RAAC Series 2007-RP2 Trust
RAAC Series 2007-RP3 Trust
RAAC Series 2007-RP4 Trust
RAAC Series 2007-SP1 Trust
RAAC Series 2007-SP2 Trust
RALI Series 2002-QS1 Trust
RALI Series 2004-QA6 Trust
RALI Series 2005-QA3 Trust
RALI Series 2005-QS12 Trust
RALI Series 2005-QS16 Trust
RALI Series 2005-QS17 Trust
RALI Series 2005-QS6 Trust
RALI Series 2006-QS17 Trust
RALI Series 2006-QS2 Trust
RALI Series 2006-QS7 Trust
RAMP Series 2001-RS3 Trust
RFMSI Series 2005-S8 Trust
RFSC Series 2002-RP1 Trust
RFSC Series 2002-RP2 Trust
RFSC Series 2003-RP1 Trust
RFSC Series 2003-RP2 Trust
RFSC Series 2004-RP1 Trust
Salomon Brothers Mortgage Trust 2001-2
Soundview Home Equity Loan Trust 2001-2
Soundview Home Loan Trust 2003-1
Soundview Home Loan Trust 2005-3
Soundview Home Loan Trust 2006-A
Mark Branton
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Linda Stesney
MD - Structured Finance
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's: No negative ratings impact on various US RMBS from transfer of servicing to Ocwen from Litton