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Fitch Reviews Servicing Transfer of IndyMac RMBS to SLS

  Fitch Reviews Servicing Transfer of IndyMac RMBS to SLS  Business Wire  NEW YORK -- May 9, 2014  Fitch Ratings has reviewed a request to confirm RMBS ratings in connection with the mortgage servicing rights (MSR) transfer from IndyMac Mortgage Services, a division of OneWest Bank, FSB (IndyMac) to Specialized Loan Servicing (SLS). The loans in the request are anticipated to transfer over a one-month period beginning June 1, 2014.  After reviewing the nine Fitch-rated transactions for which SLS requested a confirmation letter, Fitch does not expect negative rating actions on any Fitch-rated classes as a result of the proposed transfer. However, Fitch notes that this does not preclude the possibility that future rating actions may be taken due to rating criteria or future performance considerations  The transfer of loans from IndyMac marks the company's strategy to sell substantially all of its forward mortgage agency and non-agency portfolio. IndyMac completed the previously announced transfer of approximately 130,000 loans to Ocwen Loan Services in first quarter 2014. It is anticipated after the completion of the SLS transfers, IndyMac will maintain a servicing portfolio of bank-owned assets comprising approximately 34,000 loans.  The transactions Fitch reviewed were originally issued off of Alt-A and subprime RMBS shelves. Fitch currently rates SLS 'RPS2' as a primary servicer for subprime, Alt-A, and closed-end second lien mortgages, and home equity lines of credit (HELOC). The servicer is rated 'RSS2' for its special servicing capabilities. Fitch's Outlook on these servicer ratings is Stable.  The trustees in the deals Fitch reviewed are either Bank of New York Mellon rated 'AA-'/Outlook Stable or Deutsche Bank AG rated 'A+'/Outlook Negative. Both entities are eligible as a direct counterparty based on Fitch's Counterparty Criteria.  While Fitch's confirmation is only on nine transactions, per information provided by SLS, the total MSR purchase comprises 34 RMBS transactions containing over 9,000 loans with an unpaid principal balance (UPB) of $1.9 billion.  The Fitch rated transactions requiring a confirmation letter for the scheduled transfer are:  INABS 2001-C  INABS 2002-B  INABS 2004-B  INABS 2004-C  INABS 2005-A  INABS 2005-B  INABS 2005-C  INDMH 1998-1  MS 2002-HE2  Additional information is available at 'www.fitchratings.com'.  Applicable Criteria and Related Research:  --'Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers' Jan. 30, 2014;  --'Unintended Consequences of rating Confirmation References' Oct 9, 2013;  --'U.S. RMBS Surveillance Criteria' Oct. 9, 2013;  --'Counterparty Criteria for Structured Finance and Covered Bonds' May 13, 2013.  Applicable Criteria and Related Research:  Counterparty Criteria for Structured Finance and Covered Bonds  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707155  U.S. RMBS Surveillance Criteria  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720170  Unintended Consequences of Rating Confirmation References  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720279  Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731747  ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.  Contact:  Fitch Ratings, Inc. Primary Analyst Natasha Hanson, +1-212-908-0272 Director Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 or Committee Chairperson Grant Bailey, +1-212-908-0544 Managing Director or Media Relations Sandro Scenga, +1-212-908-0278 sandro.scenga@fitchratings.com  
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