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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