|Fitch Places Litton's Residential Servicer Ratings on Watch Negative |
NEW YORK, Jul 31, 2007 (BUSINESS WIRE) -- Fitch Ratings has placed Litton Loan Servicing L.P.'s (Litton) residential servicer ratings on Rating Watch Negative as follows: --Residential primary servicer for subprime and HLTV products 'RPS1' --Residential primary servicer for M.H. product 'RPS2'; --Residential special servicer 'RSS1'.
The Rating Watch Negative reflects the announcement by Radian Group, Inc. and MGIC Investment Corporation regarding the liquidity challenges faced by Litton's parent, Credit-Based Asset Servicing and Securitization, LLC (C-BASS). Although, Fitch does not publicly rate C-BASS, the company's financial condition is an important component of Fitch's servicer rating analysis and therefore of Litton's servicer rating.
Based on recent discussions regarding performance numbers and active loss mitigation efforts, Litton's servicing operations continue to perform at a level consistent with Fitch's prior assessment. At this time, Fitch does not anticipate any material disruption in Litton's servicing operations. However, Fitch will continue to monitor C-BASS' financial condition and its ability to maintain long-term stable funding and the impact on Litton's servicing and operational capabilities. In addition, Fitch will be performing its annual servicer review on Litton's servicing operations in September 2007.
For more information on the impact of financial condition on Fitch's servicer ratings, please see Fitch's report 'Impact of Financial Condition on U.S.
Residential Mortgage Servicer Ratings' dated March 26, 2007, which is available on the Fitch Ratings web site at http://www.fitchratings.com.
Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'Rating U.S. Residential Mortgage Servicers', dated Nov. 29, 2006, which is also available on the Fitch Ratings web site at http://www.fitchratings.com.
SOURCE: Fitch Ratings CONTACT: Fitch Ratings, New York Margaret Sweeney, 212-908-0712 Mary Kelsch, 212-908-0563 or Media Relations: Kenneth Reed, 212-908-0540 Sandro Scenga, 212-908-0278 Copyright Business Wire 2007 -0- KEYWORD: United States
New York INDUSTRY KEYWORD: Professional Services
Banking SUBJECT CODE: Bond/Stock Rating
... has placed Litton Loan Servicing L.P.'s (Litton) residential servicer ratings on ... its annual servicer review on Litton's servicing operations in ... http://www.msnbc.msn.com/id/20058654 - 10k - Cached