Welcome!

News Feed Item

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

NEW YORK, Jan. 7, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today affirmed its 'MOR SBC2' rankings for Ocwen Loan Servicing, LLC as a small-balance commercial mortgage primary and special servicer. The affirmed rankings reflect Morningstar's ongoing assessment of Ocwen's operational infrastructure and portfolio administration capabilities for its respective duties as a primary and special servicer of small-balance commercial assets.

As of June 30, 2013, Ocwen's servicing portfolio consisted of 4,135 loans with an aggregate unpaid principal balance (UPB) of approximately $1.8 billion. Ocwen has experienced significant growth in small-balance commercial servicing and its management indicates that the company intends to grow its servicing portfolio through Ocwen Financial Corporation's future acquisitions.

Morningstar's assessment and small-balance rankings are based on the following factors:

  • Effective organizational structure: An enterprise-wide servicing structure that promotes operating efficiencies by effectively leveraging aspects of its residential and commercial loan servicing. As such, Ocwen's larger residential operation handles payment processing and investor reporting for small-balance commercial assets, while Ocwen's small-balance commercial operation is responsible for portfolio management and oversight of loan administration functions.
  • Successful history of technology conversions and portfolio acquisitions: The company's successful conversion of acquired servicing platforms to its own system, resulting in significant growth in servicing volume throughout 2011 and 2012. In addition, Ocwen has a flexible technology platform and significant capacity suitable for future acquisitions and/or the purchase of servicing rights as a third-party servicer.
  • Efficient reporting and compliance environment: Ocwen has servicing capabilities and expertise to meet its third-party reporting and compliance requirements. The company did not incur any material reporting errors or restatements during the past 18 months. 
  • Experienced and knowledgeable employees: The retention of servicing personnel with in-depth knowledge of loan administration and special servicing functions related to its acquisition of Litton Loan Servicing LP's small-balance portfolio, as well as an increase in staffing to accommodate the acquisition of a small-balance commercial portfolio from Aurora Bank FSB.
  • Comprehensive training environment: A well-developed training program that encompasses all aspects of servicing to support the consistent application of prudent loan servicing practices.
  • Pervasive continuous improvement culture: Morningstar has a positive opinion of the company's continuing initiative to streamline workloads, policies and procedures, and quality assurance, as well as the continual evaluation of processes designed to improve operational efficiencies.
  • Excellent proprietary technology platform: Asset management applications and technology resources that effectively manage loan administration and special servicing functions.
  • Effective internal audit program: An expansive audit program covering payment processing and investor reporting functions. Ocwen underwent an initial audit of its entire small-balance commercial portfolio, including portfolio management, during 2013, after the integration of the Litton and Aurora portfolio acquisitions.
  • No discernible conflict of interest: Morningstar believes that Ocwen has effective policies and procedures to manage conflicts of interest. Overall, Ocwen is a special servicer that operates without the potential conflicts of interest inherent in transactions in which the special servicer has a close affiliation with the commercial mortgage-backed securities (CMBS) B-piece investor. Ocwen is an independent, third-party special servicer without any investment in subordinate CMBS.

The forecast for both rankings remains Stable. Morningstar believes Ocwen will continue to serve as an effective servicer and special servicer of small-balance commercial mortgage and real estate-owned (REO) loans.

To access Morningstar's operational risk assessment methodology and all published reports, please visit https://ratingagency.morningstar.com

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

Morningstar Credit Ratings' rankings, forecasts, and assessments contained in this press release are evaluations and opinions of non-credit related risks, and therefore, are not credit ratings within the meaning of Section 3 of the Securities Exchange Act of 1934 ("Exchange Act") or credit ratings subject to the Exchange Act requirements and regulations promulgated thereunder with respect to credit ratings issued by NRSROs.

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 approximately 437,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 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 registered investment advisor subsidiaries and has more than $176 billion in assets under advisement and management as of Sept. 30, 2013. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.

©2014 Morningstar, Inc.  All rights reserved.

MORN-R

Media Contact:
Michelle Weiss, +1 267-960-6014 or [email protected]

SOURCE Morningstar, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Transformation Abstract Encryption and privacy in the cloud is a daunting yet essential task for both security practitioners and application developers, especially as applications continue moving to the cloud at an exponential rate. What are some best practices and processes for enterprises to follow that balance both security and ease of use requirements? What technologies are available to empower enterprises with code, data and key protection from cloud providers, system administrators, inside...
"Calligo is a cloud service provider with data privacy at the heart of what we do. We are a typical Infrastructure as a Service cloud provider but it's been designed around data privacy," explained Julian Box, CEO and co-founder of Calligo, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
"DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at @DevOpsSUMMIT and CloudEXPO tell the world how they can leverage this emerging disruptive trend."
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...