Citing risks stemming from the transfer of mortgage servicing rights from IndyMac Mortgage Services to Ocwen (OCN), Fitch Ratings downgraded the U.S. residential servicing ratings for IndyMac this week.
The downgrades and subsequent “ratings watch negative” designation is the result of IndyMac, a division of OneWest Bank, deciding to sell its $78 billion agency and non-agency RMBS portfolio to Ocwen.
Fitch also is concerned about the departure of IndyMac’s head of servicing and said it questions whether “the company’s servicing operations could deteriorate while the (loan) transfers are taking place.”
Fitch downgraded the firm’s ratings as follows:
- U.S. Residential primary servicer rating for prime product to 'RPS3' from 'RPS3+';
- U.S. Residential primary servicer rating for Alt-A product to 'RPS3' from 'RPS3+';
- U.S. Residential primary servicer rating for subprime product to 'RPS3' from 'RPS3+';
- Special servicer rating to 'RSS3'from 'RSS3+;
