Fitch Places IndyMac Mortgage Services' U.S. RMBS Servicer Ratings on Watch
NEW YORK -- June 21, 2013
Fitch Ratings has placed the servicer ratings of IndyMac Mortgage Services, a
division of OneWest Bank, FSB (IndyMac) on Rating Watch Negative, removing the
Positive Outlook, as follows:
--U.S. residential primary servicer rating for prime product 'RPS3+';
--U.S. residential primary servicer rating for Alt-A product 'RPS3+';
--U.S. residential primary servicer rating for subprime product 'RPS3+';
--U.S. residential special servicer rating 'RSS3+.
The Rating Watch Negative is based on concerns arising from the proposed
acquisition of mortgage servicing rights (MSRs) for IndyMac's non-agency RMBS
loans by Ocwen Loan Servicing, LLC. (Ocwen) announced on June 13, 2013, and
expected material changes to IndyMac's servicing platform in connection with
the transaction. Fitch anticipates that if the transaction proceeds to closing
as expected, IndyMac's servicer ratings would be downgraded to the level of
those held by Ocwen and subsequently withdrawn. Ocwen's U.S. residential
primary and special servicer ratings are 'RPS3' and 'RSS3', respectively, on
Rating Watch Negative. As of March 31, 2013, IndyMac was servicing 391,838
loans with an unpaid principal balance (UPB) of $91.4 billion, of which 47%
(by loan count) were in non-agency RMBS transactions.
In addition to the rating actions on IndyMac's servicer ratings, further
rating action may be taken on outstanding RMBS transactions currently serviced
by IndyMac. Fitch will continue to monitor the acquisition and perform further
analysis to determine the final ratings impact on the affected bonds.
Fitch rates residential mortgage primary, master, and special servicers on a
scale of 1 to 5, with 1 being the highest rating. Within some of these rating
levels, Fitch further differentiates ratings by plus (+) and minus (-) as well
as the flat rating. For more information on Fitch's residential servicer
rating program, please see Fitch's report 'U.S. Residential and Small Balance
Commercial Mortgage Servicer Rating Criteria,' dated Jan. 31, 2011, and
'Global Rating Criteria for Structured Finance Servicers,' dated Aug. 16,
2010, both available on the Fitch web site at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria & Related Research:
--'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating
Criteria' (Jan. 31, 2011);
--'Global Rating Criteria for Structured Finance Servicers" (Aug. 16, 2010).
Applicable Criteria and Related Research:
Rating Criteria for Structured Finance Servicers
U.S. Residential and Small Balance Commercial Mortgage Servicer Rating
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Natasha Hanson, +212-908-0272
One State Street Plaza
New York, NY 10004
Thomas Crowe, +1-212-908-0227
Diane Pendley, +1-212-908-0777
Sandro Scenga, New York, +1 212-908-0278
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