New York, July 03, 2013 -- Moody's Investors Service ("Moody's") stated today that the transfer of
servicing from Bank of America, N.A. ("BOA") of 17,120
loans from 168 transactions to Ocwen Loan Servicing, LLC's ("Ocwen")
will not, in and of itself and at this time, result in a reduction
or withdrawal of the current ratings on the securities issued by these
transactions.
GreenPoint Mortgage Funding, Inc. ("GreenPoint"),
which currently owns the mortgage servicing rights (MSR) of these loans,
requested that Moody's provide its opinion on whether the ratings on the
securities issued by the affected transactions would be downgraded or
withdrawn as a result of the transactions having their loan servicing
transferred to Ocwen from Bank of America, the current servicer
of these loans, by way of MSR sale. After the MSR sale,
Ocwen will service and own the servicing rights to these 17,120
loans. The transfer of these loans is scheduled to begin in the
third quarter of 2013.
In determining the credit impact of the transfer of servicing to Ocwen,
Moody's reviewed Ocwen's servicing metrics and its ability to handle the
proposed transfer. Ocwen is rated SQ2- as a primary servicer
of subprime residential mortgage loans and as a special servicer of residential
mortgage loans. Both servicer quality assessments are on review
for possible downgrade.
Moody's view is based primarily on its opinion that the ratings of each
of the securities in the transactions will not have material negative
implication following changes in servicing strategy due to either:
i) the small number of loans being transferred -- in each of these
transactions, the number of loans being transferred represent a
small percentage of the pool balance; or ii) the ratings of the securities
are already in default.
Moody's opinion addresses only the current impact on Moody's ratings,
and we do not express an opinion as to whether the transfer of servicing
rights has or could have any other effects that investors may or may not
view positively. The determination was made without regard to any
applicable Certificate Insurance Policy, with respect to Insured
Certificates.
The methodology used in assessing the credit impact of the servicing transfer
was "Moody's Approach to Rating Residential Mortgage Servicers" published
in January 2001. Other methodologies include "Updated Moody's Servicer
Quality Rating Scale and Definitions" published in May 2005, "Moody's
Methodology For Assessing RMBS Servicer Quality (SQ)" published in January
2013, and "US RMBS Surveillance Methodology" published in June 2013.
Please see the Credit Policy page on www.moodys.com for
a copy of these methodologies.
Affected Transactions:
Transactions where less than 5% of the loan pool balance transferred:
Banc of America Funding 2006-H Trust
Banc of America Funding 2007-4 Trust
Bear Stearns Alt-A 2006-1
Bear Stearns ALT-A Trust 2004-9
Bear Stearns ALT-A Trust 2005-2
Bear Stearns ALT-A Trust 2005-5
Bear Stearns ALT-A Trust 2005-7
Bear Stearns ALT-A Trust 2005-9
Bear Stearns Alt-A Trust 2006-3
Bear Stearns Alt-A Trust 2006-4
Bear Stearns Asset Backed Securities I Trust 2004-AC5
Bear Stearns Asset Backed Securities I Trust 2005-AC1
Bear Stearns Asset Backed Securities I Trust 2005-AC3
Bear Stearns Asset Backed Securities I Trust 2005-AC8
Bear Stearns Asset Backed Securities I Trust 2006-AC1
Bear Stearns Asset Backed Securities I Trust 2007-AC2
Bear Stearns Asset Backed Securities I Trust 2007-AC4
Bear Stearns Asset Backed Securities I Trust 2007-AC5
Bear Stearns Asset Backed Securities Trust I Series 2005-AC7
CHL Mortgage Pass-Through Trust 2004-J2
Citigroup Mortgage Loan Trust 2006-AR3
Citigroup Mortgage Loan Trust 2007-AR1
Citigroup Mortgage Loan Trust 2007-AR8
CSFB Adjustable Rate Mortgage Trust 2004-4
CSFB Adjustable Rate Mortgage Trust 2005-1
CSFB Adjustable Rate Mortgage Trust 2005-7
CSFB Adjustable Rate Mortgage Trust 2006-2
CSFB Mortgage-Backed Pass-Through Certificates, Series
2002-10
CSFB Mortgage-Backed Pass-Through Certificates, Series
2002-18
CSFB Mortgage-Backed Pass-Through Certificates, Series
2002-22
CSFB Mortgage-Backed Pass-Through Certificates, Series
2002-26
CSFB Mortgage-Backed Pass-Through Certificates, Series
2003-23
CSFB Mortgage-Backed Pass-Through Certificates, Series
2003-27
CSFB Mortgage-Backed Pass-Through Certificates, Series
2003-AR30
CSFB Mortgage-Backed Pass-Through Certificates, Series
2004-4
CSFB Mortgage-Backed Pass-Through Certificates, Series
2004-AR2
CSFB Mortgage-Backed Pass-Through Certificates, Series
2005-10
CSFB Mortgage-Backed Pass-Through Certificates, Series
2005-6
CSFB Mortgage-Backed Pass-Through Certificates, Series
2005-8
CSFB Mortgage-Backed Pass-Through Certificates, Series
2005-9
CSMC Mortgage-Backed Trust Series 2007-1
CWMBS, Inc. Mortgage Pass-Through Certificates,
Series 2003-J11
Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-2
Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-BAR1
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust
Series 2005-AR1
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust
Series 2007-AR1
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust
Series 2007-AR3
Deutsche Alt-B Securities Mortgage Loan Trust, Series 2006-AB4
Deutsche Alt-B Securities Mortgage Loan Trust, Series 2007-AB1
Deutsche Mortgage Securities, Inc. Mortgage Loan Trust,
Series 2004-5
GSAA Home Equity Trust 2005-7
GSAA Home Equity Trust 2006-1
GSR Mortgage Loan Trust 2006-9F
GSRPM Mortgage Loan Trust 2007-1
HarborView Mortgage Loan Trust 2005-4
HarborView Mortgage Loan Trust 2007-7
J.P. Morgan Alternative Loan Trust 2006-A3
J.P. Morgan Alternative Loan Trust 2006-A4
J.P. Morgan Mortage Trust 2006-S2
J.P. Morgan Mortgage Trust 2007-S2
Lehman Mortgage Trust 2007-2
Lehman Mortgage Trust 2007-5
Lehman Mortgage Trust 2007-7
Lehman XS Trust 2007-6
Lehman XS Trust Mortgage Pass-Through Certificates, Series
2007-3
Lehman XS Trust Series 2006-4N
Lehman XS Trust Series 2007-14H
Luminent Mortgage Trust 2006-7
MASTR Adjustable Rate Mortgages Trust 2003-2
MASTR Adjustable Rate Mortgages Trust 2004-15
MASTR Adjustable Rate Mortgages Trust 2004-3
MASTR Adjustable Rate Mortgages Trust 2005-2
MASTR Adjustable Rate Mortgages Trust 2005-6
MASTR Alternative Loan Trust 2003-2
MASTR Alternative Loan Trust 2003-3
MASTR Alternative Loan Trust 2003-5
MASTR Alternative Loan Trust 2004-3
MASTR Alternative Loan Trust 2004-4
MASTR Alternative Loan Trust 2004-7
MASTR Alternative Loan Trust 2005-4
MASTR Alternative Loan Trust 2005-6
MASTR Asset Backed Securities Trust 2005-AB1
MASTR Asset Securitization Trust 2004-1
Merrill Lynch Mortgage Investors Trust Series 2006-AF1
Morgan Stanley Mortgage Loan Trust 2004-1
Morgan Stanley Mortgage Loan Trust 2004-2AR
Morgan Stanley Mortgage Loan Trust 2004-8AR
Morgan Stanley Mortgage Loan Trust 2005-5AR
Morgan Stanley Mortgage Loan Trust 2005-6AR
Morgan Stanley Mortgage Loan Trust 2005-9AR
Morgan Stanley Mortgage Loan Trust 2006-11
Morgan Stanley Mortgage Loan Trust 2006-1AR
Morgan Stanley Mortgage Loan Trust 2007-10XS
Morgan Stanley Mortgage Loan Trust 2007-14AR
Morgan Stanley Mortgage Loan Trust 2007-3XS
Morgan Stanley Mortgage Loan Trust 2007-6XS
Nomura Asset Acceptance Corporation Alternative Loan Trust, Series
2005-AP3
Nomura Asset Acceptance Corporation, Alternative Loan Trust,
Series 2005-AP1
Prime Mortgage Trust 2005-2
Prime Mortgage Trust 2005-5
SACO I Trust 2005-5
Sequoia Mortgage Trust 2003-5
Sequoia Mortgage Trust 2003-8
Sequoia Mortgage Trust 2004-1
Structured Adjustable Rate Mortgage Loan Trust 2004-18
Structured Adjustable Rate Mortgage Loan Trust 2005-5
Structured Adjustable Rate Mortgage Loan Trust 2007-6
Structured Asset Mortgage Investments II Trust 2004-AR2
Structured Asset Mortgage Investments II Trust 2005-AR1
Structured Asset Securities Corp Trust 2003-32
Structured Asset Securities Corp Trust 2003-35
Structured Asset Securities Corp Trust 2003-36XS
Structured Asset Securities Corp Trust 2004-15
Structured Asset Securities Corp Trust 2004-17XS
Structured Asset Securities Corp Trust 2004-19XS
Structured Asset Securities Corp Trust 2004-7
Structured Asset Securities Corp Trust 2004-9XS
Terwin Mortgage Trust, Series TMTS 2004-5HE
WaMu Mortgage Pass-Through Certificates, WMALT Series 2006-5
Trust
Transactions where the ratings are in default:
Bear Stearns ALT-A Trust 2005-8
Bear Stearns Asset Backed Securities I Trust 2006-AC5
Bear Stearns Second Lien Trust 2007-1
Citigroup Mortgage Loan Trust Inc. 2005-7
CSFB Adjustable Rate Mortgage Trust 2006-3
Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-AR4
Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-AR2
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust
Series 2005-6
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust
Series 2006-AF1
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust
Series 2006-AR2
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust
Series 2006-AR6
Deutsche Alt-B Securities, Inc. Mortgage Loan Trust
Series 2006-AB2
GreenPoint Home Equity Loan Trust 2004-3
GreenPoint Home Equity Loan Trust 2004-4
Greenpoint Mortgage Funding Trust 2005-HE3
Greenpoint Mortgage Funding Trust 2007-HE1, Mortgage-Backed
Notes, Series 2007-HE1
GSAA Home Equity Trust 2005-14
GSAA Home Equity Trust 2006-10
GSAA Home Equity Trust 2006-11
GSAA Home Equity Trust 2006-12
GSAA Home Equity Trust 2006-14
GSAA Home Equity Trust 2006-16, Asset-Backed Certificates,
Series 2006-16
GSAA Home Equity Trust 2006-17
GSAA Home Equity Trust 2006-19
GSAA Home Equity Trust 2006-20
GSAA Home Equity Trust 2006-3
GSAA Home Equity Trust 2006-5
GSAA Home Equity Trust 2006-9
GSAA Home Equity Trust 2007-1
GSAA Home Equity Trust 2007-2
GSAA Home Equity Trust 2007-3
GSAA Home Equity Trust 2007-4
GSR Mortgage Loan Trust 2005-HEL1
J.P. Morgan Alternative Loan Trust 2007-S1
Lehman ABS Corporation Home Equity Loan Asset-Backed Notes,
Series 2005-1
Lehman XS Trust Series 2007-11
Lehman XS Trust Series 2007-9
Merrill Lynch Alternative Note Asset Trust, Series 2007-A1
Merrill Lynch Alternative Note Asset Trust, Series 2007-A2
Merrill Lynch Alternative Note Asset Trust, Series 2007-A3
Merrill Lynch Mortgage Investors Trust 2006-A1
Merrill Lynch Mortgage Investors Trust 2006-A4
Morgan Stanley Mortgage Loan Trust 2006-12XS
Morgan Stanley Mortgage Loan Trust 2007-2AX
Structured Adjustable Rate Mortgage Loan Trust 2007-5
Terwin Mortgage Trust 2006-4SL
Terwin Mortgage Trust 2006-6
Terwin Mortgage Trust 2006-8
WaMu Mortgage Pass-Through Certificates, WMALT Series 2007-3
Trust
Ilana J Fried
Associate 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
Deepika Kothari
VP - Sr Credit Officer/Manager
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: Servicing transfer of 168 US RMBS transactions to Ocwen Loan Servicing,LLC from Bank of America, N.A has no negative ratings impact