Ocwen Servicer Ratings Off Watchlist

The residential servicer ratings of Ocwen Financial Corp. have been affirmed and removed from Rating Watch Negative by Fitch Ratings.The affected ratings are Ocwen's RPS2 residential primary servicer rating for subprime mortgages and its RSS2 residential special servicer rating. Fitch said the rating actions resulted from its determination that Ocwen has made changes to its servicing practices that were recommended in an April 2004 supervisory agreement with the Office of Thrift Supervision. The changes included the establishment of best practices, the creation of a consumer ombudsman, and the enhancement of consumer disclosures, Fitch reported. The rating agency noted that many class action lawsuits have been filed against Ocwen over the past 18 months alleging predatory and deceptive business practices, which Ocwen has denied. "Fitch takes these charges very seriously and is concerned about the types of issues that have been alleged by consumers and, as a result, will continue to closely monitor the company's legal situation in order to evaluate any potential impact on Ocwen's loan servicing and operational capabilities," the rating agency said. Fitch can be found online at http://www.fitchratings.com.