Moody's Affirms Aames' Ratings
Moody's Investors Service has affirmed Aames Financial Corp.'s "SQ3" rating as a servicer of subprime residential mortgage loans. Moody's said the rating reflects Aames' average collection abilities, above-average loss mitigation results, average foreclosure and REO timeline management. However, Moody's said it views Aames' servicing stability as "below average," citing management turnover as a factor in that analysis.
Aames originates, securitizes and services subprime first lien and simultaneously originated second lien residential home loans. The company's servicing operation, based in Los Angeles, managed approximately 40,652 loans totaling $5.7 billion as of the end of February.
Aames' board recently approved a corporate transformation that, subject to shareholder approval, will see the company drop its REIT status and become a "C" corporation.
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