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

Dec 24, 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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