Moody’s reviews Ocwen, Hoam Loan, Altisource

Moody's Investors Service said it placed the following ratings on review for possible downgrade:

• Ocwen Financial Corp.: B1 corporate family rating, B1 senior secured bank credit facility and B2 senior unsecured debt;

• Home Loan Servicing Solutions, Ltd.: Ba3 corporate family rating and Ba3 senior secured bank credit facility; and

• Altisource Solutions Sarl: B1 corporate family rating and B1 senior secured bank credit facility.

Moody’s said the actions follow the New York Department of Financial Services' (DFS) Aug. 4 issuance of a letter to Ocwen that raises concerns about potential conflicts of interest and potentially inconsistent statements and representations regarding corporate governance.

In addition, on Aug. 12, Ocwen and Home Loan Servicing announced that they were restating their financial statements for the last several periods; the companies expect that such restatements shall be completed on or prior to Aug. 18. The heightened regulatory scrutiny that these companies are facing, as well as the potential material weakness in controls at Ocwen and Home Loan Servicing, could result in actions that restrict their activities, the levying of monetary fines, or additional actions that negatively affect their credit strength.

Moody’s also said that Home Loan Servicing’s and Altisource's ratings are driven in large part by their reliance on Ocwen whereby any changes to Ocwen's ratings would likely result in changes to their ratings.

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