New York, December 17, 2014 -- Moody's announced today that proposed amendments to servicing agreements
underlying the 27 RMBS transactions listed below, which are currently
serviced by Specialized Loan Servicing LLC (SLS), would not,
in and of themselves and as of this time, result in the downgrade
or withdrawal of the Moody's ratings of the issued securities.
SLS informed us that the servicing transferred to it from Bank of America,
NA on 16 December 2014. Today's announcement does not opine
on the rating impact, if any, from the servicing transfer
itself, but only covers the proposed amendments.
Moody's assessed the credit impact of the following proposed amendments.
For the transactions listed below under "Category A,"
the amendments: (1) allow the servicer to finance advances and deferred
but unpaid servicing fees through an advance facility, (2) give
the servicer broader discretion to modify loans, (3) allow the servicer
to force place hazard insurance under its blanket policy, (4) require
any successor servicer to reimburse a terminated servicer for its advances
on a first-in-first-out basis, and (5) eliminated
a clause that required the servicer to make advances to modified loans
pursuant to the original amortization schedule. For some of these
transactions, those from the CWL shelf, the amendments also
included a provision requiring the servicer to periodically report to
the trustee on its activities.
The amendments for CWABS, Inc., Asset-Backed
Certificates, Series 2002-BC3: (1) allow the servicer
to finance advances and deferred but unpaid servicing fees through an
advance facility, (2) allow the servicer to force place hazard insurance
under its blanket policy, and (4) require any successor servicer
to reimburse a terminated servicer for its advances on a first-in-first-out
basis.
The amendments for Structured Asset Securities Corp Trust 2006-BC4
and Structured Asset Securities Corp Trust 2006-BC5: (1)
allow the servicer to finance advances and deferred but unpaid servicing
fees through an advance facility, and (2) allow the servicer to
recoup its non-recoverable advances from general collections.
The amendment for Park Place Securities, Inc., Asset-Backed
Pass-Through Certificates, Series 2004-MCW1,
Morgan Stanley Home Equity Loan Trust 2006-1, Morgan Stanley
Home Equity Loan Trust 2006-2, and Citigroup Mortgage Loan
Trust 2007-AMC1: allow the servicer to finance advances and
deferred but unpaid servicing fees through an advance facility.
Moody's has determined that the proposed amendments, in and of themselves
and at this time, will not result in the downgrade or withdrawal
of the currently assigned ratings of the securities issued in the below
transactions. However, Moody's opinion addresses only the
rating impact associated with the proposed amendments, and Moody's
is not expressing any opinion as to whether the amendments have,
or could have, other non-rating related effects that may
have a detrimental impact on the interests of note holders and/or counterparties.
Moody's believes the amendment to allow the servicer to finance its advances
and deferred servicing fees through an advance facility is not credit
negative because it does not alter the servicer's advancing obligations,
nor does it expand the servicer's right to be reimbursed for advances.
Furthermore, the servicer agrees to indemnify the transaction parties
for any costs resulting from claims arising out of any advance financing
facility.
For the other amendments Moody's considered the outstanding ratings
in each particular transaction and, in some cases, analyzed
the sensitivity of the ratings to the timing of cashflow and higher losses,
as appropriate.
The methodologies used in these ratings were "Moody's Approach to Rating
US Residential Mortgage-Backed Securities" published in December
2008, and "US RMBS Surveillance Methodology" published in November
2013.
The methodology used in rating Interest-Only Securities was "Moody's
Approach to Rating Structured Finance Interest-Only Securities"
published in February 2012. Please see the Credit Policy page on
www.moodys.com for a copy of these methodologies.
Moody's will continue monitoring the ratings. Any change in the
ratings will be publicly disseminated by Moody's through appropriate media.
List of Transactions:
Category A Transactions:
CWMBS, Inc. Mortgage Pass-Through Certificates,
Series 2003-33
CWMBS, Inc. Mortgage Pass-Through Certificates,
Series 2003-38
CWMBS, Inc. Mortgage Pass Through Certificates, Series
2003-13
CWMBS, Inc. Mortgage Pass-Through Certificates,
Series 2003-16
CWMBS, Inc. Mortgage Pass-Through Certificates,
Series 2003-J11
CHL Mortgage Pass-Through Trust 2002-39
CHL Mortgage Pass-Through Trust, Series 2002-J5
CHL Mortgage Pass-Through Trust 2003-1
CHL Mortgage Pass-Through Trust 2003-11
CHL Mortgage Pass-Through Trust 2003-3
CHL Mortgage Pass-Through Trust 2003-34
CHL Mortgage Pass-Through Trust 2003-39
CHL Mortgage Pass-Through Trust 2003-44
CHL Mortgage Pass-Through Trust 2003-J5
CHL Mortgage Pass-Through Trust 2004-J1
Remaining Transactions:
CWABS, Inc. Asset-Backed Certificates, Series
2002-2
CWABS, Inc. Asset-Backed Certificates, Series
2002-3
CWABS Inc., Asset-Backed Certificates, Series
2002-BC1
CWABS, Inc., Asset-Backed Certificates,
Series 2002-BC2
CWABS, Inc., Asset-Backed Certificates,
Series 2002-BC3
CWHEQ Home Equity Loan Trust, Series 2006-S10
Park Place Securities, Inc., Asset-Backed Pass-Through
Certificates, Series 2004-MCW1
Structured Asset Securities Corporation Mortgage Pass-Through Certificates,
Series 2006-BC4
Structured Asset Securities Corporation Trust 2006-BC5
Morgan Stanley Home Equity Loan Trust 2006-1
Morgan Stanley Home Equity Loan Trust 2006-2
Citigroup Mortgage Loan Trust 2007-AMC1
This publication does not announce a credit rating action. For
any credit ratings referenced in this publication, please see the
ratings tab on the issuer/entity page on www.moodys.com
for the most updated credit rating action information and rating history.
Hassan Shamji
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
Yehudah Forster
VP - Senior Credit Officer
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 determines no negative ratings impact to various SLS-serviced RMBS from servicing amendments