Irwin Servicer Ratings Downgraded

The ratings of Irwin Home Equity Corp. as a primary servicer of second-lien and of high loan-to-value residential mortgage loans have been downgraded from SQ2-plus to SQ2-minus by Moody's Investors Service.The ratings remain on review for possible downgrade, and Moody's has reduced the company's servicing stability assessment from average to below average. Moody's said the actions reflect the volatility in the market for second-lien and high-LTV loans, and the second-quarter earnings announcement of the parent corporation, Irwin Financial, which "noted the negative performance of the Irwin Home Equity line of business." Sustained negative performance could affect the willingness and ability of the parent corporation to invest in the servicing platform. "Additionally, there is uncertainty in the company's ability to maintain its servicing performance, staffing levels, turnover rates, and the composition of the management team," Moody's said.