New York, April 01, 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 2002-OPT1 Trust
ABFC Asset-Backed Certificates, Series 2004-OPT4
Ameriquest Mortgage Securities Inc., Series 2003-1
Ameriquest Mortgage Securities Inc., Series 2003-11
Ameriquest Mortgage Securities Inc., Series 2003-12
Ameriquest Mortgage Securities Inc., Series 2003-2
Ameriquest Mortgage Securities Inc., Series 2003-5
Ameriquest Mortgage Securities Inc., Series 2003-9
Ameriquest Mortgage Securities Inc., Series 2004-FR1
Ameriquest Mortgage Securities Inc., Series 2004-R2
Ameriquest Mortgage Securities Inc., Series 2006-M3
Ameriquest Mortgage Securities Inc., Series 2006-R1
Ameriquest Mortgage Securities Inc., Series 2006-R2
Amortizing Residential Collateral Trust, Series 2002-BC6
Argent Securities Inc., Series 2004-W3
Argent Securities Inc., Series 2004-W4
Argent Securities Inc., Series 2004-W8
Argent Securities Inc., Series 2005-W2
Argent Securities Inc., Series 2005-W3
Argent Securities Inc., Series 2005-W5
Carrington Mortgage Loan Trust, Series 2006-OPT1
Citigroup Mortgage Loan Trust 2006-AMC1
Citigroup Mortgage Loan Trust 2006-HE2
First Franklin Mortgage Loan Trust 2002-FF1
MASTR Asset Backed Securities Trust 2007-HE2
Merrill Lynch Mortgage Investors Trust Series 2003-OPT1
Nomura Home Equity Loan Trust 2005-HE1
Option One Mortgage Loan Trust 2000-5
Option One Mortgage Loan Trust 2002-1
Option One Mortgage Loan Trust 2002-2
Option One Mortgage Loan Trust 2002-3
Option One Mortgage Loan Trust 2002-4
Option One Mortgage Loan Trust 2002-5
Option One Mortgage Loan Trust 2002-6
Option One Mortgage Loan Trust 2003-1
Option One Mortgage Loan Trust 2003-4
Option One Mortgage Loan Trust 2003-5
Option One Mortgage Loan Trust 2004-1
Option One Mortgage Loan Trust 2006-1
Option One Mortgage Loan Trust 2007-6
Salomon Brothers Mortgage Securities VII, Inc. 1998-OPT2
Soundview Home Loan Trust 2006-OPT1
Soundview Home Loan Trust 2006-OPT2
Soundview Home Loan Trust 2006-OPT3
Soundview Home Loan Trust 2006-OPT5
Soundview Home Loan Trust 2007-OPT2
Structured Asset Investment Loan Trust 2003-BC4
Structured Asset Investment Loan Trust 2003-BC8
Structured Asset Investment Loan Trust 2004-11
Structured Asset Securities Corp Trust 2006-OPT1
Alt-A Collateral
American Home Mortgage Assets Trust 2005-1
American Home Mortgage Assets Trust 2007-3
American Home Mortgage Investment Trust 2004-2
American Home Mortgage Investment Trust 2005-1
American Home Mortgage Investment Trust 2005-4
Option-ARM Collateral
American Home Mortgage Asset Trust 2007-4
American Home Mortgage Assets Trust 2006-3
American Home Mortgage Assets Trust 2007-1
American Home Mortgage Investment Trust 2006-2
Scratch And Dent Collateral
Ameriquest Mortgage Securities Inc., Quest Trust 2002-X1
Ameriquest Mortgage Securities Inc., Quest Trust 2003-X3
Ameriquest Mortgage Securities Inc., Quest Trust 2003-X4
Ameriquest Mortgage Securities Inc., Quest Trust 2004-X1
Ameriquest Mortgage Securities Inc., Quest Trust 2004-X2
Ameriquest Mortgage Securities Inc., Quest Trust 2004-X3
MESA Trust Asset Backed Certificates, Series 2001-5
Quest Trust 2006-X1
Structured Asset Securities Corp Trust 2007-TC1
Second Lien Collateral
Structured Asset Securities Corp Trust 2004-S2
Structured Asset Securities Corp Trust 2004-S3
Structured Asset Securities Corp Trust 2004-S4
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 during April 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 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/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 to Ocwen Loan Servicing,LLC from Homeward Residential, Inc. has no negative ratings impact on Seventy One US RMBS transactions