Moody's Eyes MLN Servicer Ratings

The servicer ratings of Mortgage Lenders Network USA Inc. have been placed on watch for possible downgrade by Moody's Investors Service.Moody's said the action was due in part to "MLN's recent announcement that it has ceased funding wholesale loans, has laid off a portion of its staff, and has placed on temporary furlough a substantial portion of its remaining staff." MLN is currently rated SQ3 as a primary servicer of prime, subprime, and second-lien mortgage loans. The rating scale ranges from SQ1 (strong) to SQ5 (weak). The rating agency can be found online at http://www.moodys.com.