Moody's Eyes Ocwen MBS Classes

Twelve classes from four series of securities issued by Ocwen Residential MBS Corp. and backed by seasoned, re-performing mortgage loans have been placed under review for possible downgrade by Moody's Investors Service.The affected classes are as follows: series 1998-R1, classes B-2 and B-3; series 1998-R2, classes B-4F and B-5F; series 1998-R3, classes A-1, A-WAC, B-1, B-2, and B-3; and series 1999-R1, classes B-5A, B-4F, and B-5F. Moody's cited higher-than-expected cumulative losses, which it said have caused credit enhancement (relative to expected future losses) to fall below the levels apparently needed to maintain current credit ratings. The rating agency also placed classes B1-A and B2-A of series 1999-R1 on review for possible upgrade.