Morningstar Credit Ratings, LLC Affirms 'MOR SBC2' Small-Balance Commercial Mortgage Primary and Special Servicer Rankings for Ocwen Loan Servicing, LLC

24 Dec, 2015, 10:04 ET from Morningstar, Inc.

NEW YORK, Dec. 24, 2015 /PRNewswire/ -- Morningstar Credit Ratings, LLC today affirmed its 'MOR SBC2' small-balance commercial mortgage primary and special servicer rankings for Ocwen Loan Servicing, LLC (Ocwen), a subsidiary of Ocwen Mortgage Servicing, which is a wholly owned subsidiary of Ocwen Financial Corporation (OFC). Morningstar's forecast for both rankings remains Stable.

Morningstar affirmed its rankings based on Ocwen's experienced management and staff, satisfactory internal audit function, comprehensive training culture, efficient reporting and compliance environment, and effective proprietary technology platform. The stable forecast reflects the company's ability to leverage shared services within the organization by using the residential operating platforms in the United States and India to perform primary servicing duties such as payment processing, investor accounting and reporting, escrow disbursements and analysis, and early-stage collection efforts. Ocwen's India platform handles certain back-office functions such as ordering valuations and property inspections, financial analysis, and various real estate owned (REO) processing duties. As a special servicer, Ocwen made two significant portfolio acquisitions in 2011 and 2012 and has subsequently achieved solid resolution results despite one portfolio containing loans with substantial environmental issues. More recently, Ocwen has continued to replace portfolio runoff with commercial origination flow agreements closed during the past 24 months. As a growth strategy, OFC has developed a commercial lending business through its Homeward Residential Inc. subsidiary, called Liberty Rental Finance, to provide single family rental property financing.

As of June 30, 2015, Ocwen's primary servicing portfolio consisted of 4,764 loans with an unpaid balance (UPB) of approximately $1.9 billion and its special servicing portfolio consisted of 674 loans, including REO, with a UPB of approximately $285 million.

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About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) offering a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $170 billion in assets under advisement and management as of Sept. 30, 2015. The company has operations in 27 countries. Morningstar, Inc. is not an NRSRO and does not issue NRSRO credit ratings.

Morningstar rankings, forecasts, and assessments contained in this press release are not assessments of the creditworthiness of an obligor or a security and thus are not credit ratings subject to NRSRO regulations. 

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Media Contact: Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

 

SOURCE Morningstar, Inc.



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