HOUSTON, January 23, 2015 – Today, the Holders of 25% Voting Rights in 119 Residential Mortgage Backed Securities Trusts (RMBS) with an original balance of more than $82 billion issued a Notice of Non-Performance (Notice) to BNY Mellon, Citibank, Deutsche Bank, HSBC, US Bank, and Wells Fargo, as Trustees, Securities Administrators, and/or Master Servicers, regarding the material failures of Ocwen Financial Corporation (Ocwen) as Servicer and/or Master Servicer, to comply with its covenants and agreements under governing Pooling and Servicing Agreements (PSAs).
Based on a lengthy investigation and analysis by independent, highly qualified experts, the Holders’ Notice alleges Ocwen has failed to perform, in material respects, its contractual obligations as Servicer and/or Master Servicer under the applicable PSAs in the following ways:
• Use of Trust funds to “pay” Ocwen’s required “borrower relief” obligations under a regulatory settlement, through implementation of modifications on Trust- owned mortgages that have shifted the costs of the settlement to the Trusts and enriched Ocwen unjustly;
• Employing conflicted servicing practices that enriched Ocwen’s corporate affiliates, including Altisource and Home Loan Servicing Solutions, to the detriment of the Trusts, investors, and borrowers;
• Engaging in imprudent and wholly improper loan modification, advancing, and advance recovery practices;
• Failure to maintain adequate records, communicate effectively with borrowers, or comply with applicable laws, including consumer protection and foreclosure laws; and,
• Failure to account for and remit accurately to the Trusts cash flows from, and amounts realized on, Trust-owned mortgages.
As a result of the imprudent and improper servicing practices alleged in the Notice, the Holders further allege that their experts’ analyses demonstrate that Trusts serviced by Ocwen have performed materially worse than Trusts serviced by other servicers. The Holders further allege that these claimed defaults and deficiencies in Ocwen’s performance have materially affected the rights of the Holders and constitute an ongoing Event of Default under the applicable PSAs. The Holders intend to take further action to recover these losses and protect the Trusts’ assets and mortgages.
The Notice was issued on behalf of Holders in the following Ocwen-serviced RMBS:
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ABFC 2004-OPT4 |
DBALT 2007-RMP1 |
MALT 2006-2 |
RASC 2006-EMX3 |
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ABFC 2005-WMC1 |
FFML 2004-FF3 |
MSAC 2003-SD1 |
RASC 2006-EMX4 |
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ABFC 2006-HE1 |
FFML 2005-FF1 |
MSAC 2004-HE4 |
RASC 2006-EMX6 |
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ABSHE 2003-HE5 |
FHLT 2006-A |
MSAC 2006-HE1 |
RASC 2006-KS5 |
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ABSHE 2004-HE3 |
GSAA 2006-16 |
MSAC 2006-HE2 |
RASC 2006-KS6 |
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ACE 2002-HE1 |
GSAA 2007-10 |
MSAC 2007-HE4 |
RASC 2006-KS8 |
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ACE 2004-FM2 |
GSAA 2007-8 |
MSAC 2007-HE5 |
RASC 2007-KS1 |
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ACE 2004-OP1 |
GSAMP 2003-NC1 |
MSHEL 2007-2 |
RASC 2007-KS3 |
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ACE 2005-SD3 |
GSAMP 2004-OPT |
MSM 2006-8AR |
RAST 2005-A10 |
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ACE 2006-SD2 |
GSAMP 2005-WMC1 |
MSM 2006-9AR |
RAST 2005-A13 |
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ACE 2006-SD3 |
GSAMP 2006-HE6 |
NHEL 2006-6 |
RAST 2005-A16 |
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AHMA 2005-1 |
GSAMP 2007-H1 |
RAAC 2005-SP2 |
RAST 2006-A15 |
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AHMA 2006-4 |
GSAMP 2007-HS1 |
RAAC 2007-SP1 |
RAST 2006-A16 |
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AHMA 2007-4 |
GSR 2005-AR7 |
RAAC 2007-SP3 |
RAST 2006-A2 |
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ARMT 2005-10 |
GSR 2006-10F |
RALI 2004-QS1 |
RFMSI 2006-S2 |
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BAFC 2007-3 |
GSR 2006-4F |
RALI 2005-QA13 |
RFMSI 2006-SA1 |
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BALTA 2005-4 |
GSR 2007-2F |
RALI 2005-QS1 |
RFMSI 2007-SA4 |
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BSABS 2006-AC1 |
HVMLT 2003-1 |
RALI 2005-QS11 |
SABR 2006-FR1 |
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CBASS 2001-CB4 |
HVMLT 2005-16 |
RALI 2006-QA7 |
SABR 2006-FR2 |
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CBASS 2004-CB3 |
HVMLT 2005-4 |
RALI 2007-QA2 |
SABR 2006-FR3 |
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CBASS 2004-CB4 |
HVMLT 2005-7 |
RAMP 2005-RS7 |
SABR 2006-FR4 |
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CBASS 2004-CB7 |
HVMLT 2006-3 |
RAMP 2006-RS2 |
SASC 2004-13 |
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CBASS 2005-CB1 |
HVMLT 2006-SB1 |
RAMP 2006-RS6 |
SASC 2006-GEL3 |
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CBASS 2006-CB5 |
MABS 2003-OPT2 |
RAMP 2006-RZ2 |
SASC 2007-TC1 |
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CBASS 2006-CB9 |
MABS 2004-OPT1 |
RAMP 2007-RS1 |
SVHE 2005-3 |
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CBASS 2007-CB3 |
MABS 2005-FRE1 |
RASC 2001-KS1 |
SVHE 2006-NLC1 |
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CMLTI 2007-SHL1 |
MABS 2006-AM1 |
RASC 2004-KS12 |
TBW 2006-1 |
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DBALT 2005-1 |
MABS 2006-AM3 |
RASC 2005-AHL1 |
TBW 2006-3 |
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DBALT 2005-AR2 |
MABS 2006-FRE2 |
RASC 2005-AHL3 |
TMST 2007-3 |
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DBALT 2006-AR1 |
MALT 2006-1 |
RASC 2005-EMX3 |
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