New York, March 22, 2013 -- Moody's Investors Service ("Moody's") stated today that Ocwen Loan Servicing,LLC's
("Ocwen") purchase of the servicing rights to the affected transactions
listed below from Homeward Residential, Inc. ("Homeward")
will not, in and of itself and at this time, result in a reduction
or withdrawal of the current ratings of the securities issued by the affected
transactions.
Affected Transactions:
Subprime Collateral
ABFC Asset-Backed Certificates, Series 2006-HE1
ACE Securities Corp. Home Equity Loan Trust, Series 2006-OP1
ACE Securities Corp. Home Equity Loan Trust, Series 2006-OP2
American Home Mortgage Assets Trust 2007-SD2
American Home Mortgage Investment Trust 2007-SD1
Ameriquest Mortgage Securities Inc. Series 2001-2
Ameriquest Mortgage Securities Inc., 2002-4
Ameriquest Mortgage Securities Inc., Quest Trust 2005-X2
Ameriquest Mortgage Securities Inc., Series 2002-2
Ameriquest Mortgage Securities Inc., Series 2002-3
Ameriquest Mortgage Securities Inc., Series 2002-AR1
Ameriquest Mortgage Securities Inc., Series 2003-AR1
Ameriquest Mortgage Securities Inc., Series 2003-AR2
Argent Mortgage Loan Trust 2005-W1
Argent Securities Trust 2006-M1
Argent Securities Trust 2006-M2
Argent Securities Trust 2006-W2
Argent Securities Trust 2006-W3
Argent Securities Trust 2006-W4
Argent Securities Trust 2006-W5
Asset Backed Funding Corporation Asset-Backed Certificates,
Series 2006-OPT1
Asset Backed Funding Corporation Asset-Backed Certificates,
Series 2006-OPT2
Asset Backed Funding Corporation Asset-Backed Certificates,
Series 2006-OPT3
First Franklin Mortgage Loan Trust 2001-FF2, Asset-Backed
Certificates, Series 2001-FF2
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-OP1
Option One Mortgage Loan Trust 2006-2
Option One Mortgage Loan Trust 2006-3
Option One Mortgage Loan Trust 2007-1
Option One Mortgage Loan Trust 2007-2
Option One Mortgage Loan Trust 2007-3
Option One Mortgage Loan Trust 2007-4
Option One Mortgage Loan Trust 2007-5
Option One Mortgage Loan Trust 2007-CP1
Option One Mortgage Loan Trust 2007-FXD2
Quest Trust 2006-X2
SG Mortgage Securities Trust 2006-OPT2
Soundview Home Loan Trust 2006-OPT4
Soundview Home Loan Trust 2007-OPT1
Soundview Home Loan Trust 2007-OPT3
Soundview Home Loan Trust 2007-OPT4
Soundview Home Loan Trust 2007-OPT5
Structured Asset Investment Loan Trust 2003-BC11
Structured Asset Investment Loan Trust 2003-BC2
Structured Asset Investment Loan Trust 2003-BC6
Structured Asset Investment Loan Trust 2004-2
Structured Asset Investment Loan Trust 2004-4
Structured Asset Investment Loan Trust 2004-7
Structured Asset Investment Loan Trust 2006-BNC3
Structured Asset Securities Corp 2006-Z
Structured Asset Securities Corp Trust 2006-BC2
Structured Asset Securities Corp., Amortizing Residential
Collateral Trust 2001-BC1
Alt-A Collateral
American Home Mortgage Assets Trust 2005-2
American Home Mortgage Assets Trust 2006-1
American Home Mortgage Assets Trust 2006-2
American Home Mortgage Assets Trust 2006-4
American Home Mortgage Assets Trust 2006-5
American Home Mortgage Assets Trust 2006-6
American Home Mortgage Assets Trust 2007-2
American Home Mortgage Assets Trust 2007-5
American Home Mortgage Investment Trust 2006-1
American Home Mortgage Investment Tr 2006-3
American Home Mortgage Investment Trust 2007-1
American Home Mortgage Investment Trust 2007-2
HarborView Mortgage Loan Trust 2006-14
HarborView Mortgage Loan Trust 2007-2
American Home Mortgage Investment Trust 2007-A
HarborView Mortgage Loan Trust 2007-5
Closed End Second Lien Collateral
American Home Mortgage Investment Trust 2005-SD1
Structured Asset Securities Corporation 2005-S1
Structured Asset Securities Corp Trust 2005-S5
Structured Asset Securities Corp Trust 2005-S7
Affected Transactions with less than 5% of loans transferred:
Subprime Collateral
Amortizing Residential Collateral Trust 2002-BC9
Amortizing Residential Collateral Trust Mortgage Pass-Through Certificates,
Series 2002-BC2
Amortizing Residential Collateral Trust, Series 2002-BC3
Asset Backed Securities Corporation Home Equity Loan Trust, Series
2001-HE1
SASCO Mortgage Loan Trust 2003-GEL1
Structured Asset Investment Loan Trust 2003-BC5
Structured Asset Investment Loan Trust 2004-10
Structured Asset Investment Loan Trust 2005-1
Structured Asset Investment Loan Trust 2005-10
Structured Asset Investment Loan Trust 2005-11
Structured Asset Investment Loan Trust 2005-7
Structured Asset Investment Loan Trust 2006-2
Structured Asset Securities Corporation 2005-GEL4
Structured Asset Securities Corporation 2006-GEL3
Structured Asset Securities Corporation 2007-GEL2
Alt-A Collateral
HarborView Mortgage Loan Trust 2007-6
Homeward Residential, Inc. ("Homeward") has 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 servicing rights transferred to Ocwen
from Homeward. The transfer of the servicing of the mortgage loans
is expected to be completed by March 31, 2013.
In determining the credit impact of the transfer of servicing to Ocwen,
Moody's reviewed i) Ocwen's servicing metrics ii) the affected transactions'
sensitivity to cash flow disruptions due to changes in servicing and modification
practices, and iii) Ocwen's ability to handle the proposed
transfer.
Moody's view is based primarily on its opinion that the performance of
each of the securities in the affected transactions will not have material
negative implication following changes in servicing strategy that can
occur after transfer of servicing rights. 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 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 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, "Proposal
to Update Moody's Approach To Servicer Quality (SQ) Assessment For U.S.
Primary Residential Mortgage Servicers" published in July 2012,
" 2005-2008 US RMBS Surveillance Methodology" published in July
2011, "Pre-2005 US RMBS Surveillance Methodology"
published in January 2012, "US RMBS Surveillance Methodology
for Scratch and Dent" published in May 2011, and "Second
Lien RMBS Loss Projection Methodology" published in April 2010.
Please see the Credit Policy page on www.moodys.com for
a copy of these methodologies.
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
Vice President - Senior Analyst
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 to Ocwen Loan Servicing,LLC from Homeward Residential, Inc. has no negative ratings impact on Eighty Seven US RMBS transactions