CERTIFICATEHOLDERS ISSUE NOTICE OF NON-PERFORMANCE IDENTIFYING ALLEGED FAILURES BY OCWEN FINANCIAL CORPORATION AS SERVICER OR MASTER SERVICER TO PERFORM COVENANTS AND SERVICING AGREEMENTS IN 119 RESIDENTIAL MORTGAGE BACKED SECURITIES TRUSTS

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:

ABFC 2004-OPT4

DBALT 2007-RMP1

MALT 2006-2

RASC 2006-EMX3

ABFC 2005-WMC1

FFML 2004-FF3

MSAC 2003-SD1

RASC 2006-EMX4

ABFC 2006-HE1

FFML 2005-FF1

MSAC 2004-HE4

RASC 2006-EMX6

ABSHE 2003-HE5

FHLT 2006-A

MSAC 2006-HE1

RASC 2006-KS5

ABSHE 2004-HE3

GSAA 2006-16

MSAC 2006-HE2

RASC 2006-KS6

ACE 2002-HE1

GSAA 2007-10

MSAC 2007-HE4

RASC 2006-KS8

ACE 2004-FM2

GSAA 2007-8

MSAC 2007-HE5

RASC 2007-KS1

ACE 2004-OP1

GSAMP 2003-NC1

MSHEL 2007-2

RASC 2007-KS3

ACE 2005-SD3

GSAMP 2004-OPT

MSM 2006-8AR

RAST 2005-A10

ACE 2006-SD2

GSAMP 2005-WMC1

MSM 2006-9AR

RAST 2005-A13

ACE 2006-SD3

GSAMP 2006-HE6

NHEL 2006-6

RAST 2005-A16

AHMA 2005-1

GSAMP 2007-H1

RAAC 2005-SP2

RAST 2006-A15

AHMA 2006-4

GSAMP 2007-HS1

RAAC 2007-SP1

RAST 2006-A16

AHMA 2007-4

GSR 2005-AR7

RAAC 2007-SP3

RAST 2006-A2

ARMT 2005-10

GSR 2006-10F

RALI 2004-QS1

RFMSI 2006-S2

BAFC 2007-3

GSR 2006-4F

RALI 2005-QA13

RFMSI 2006-SA1

BALTA 2005-4

GSR 2007-2F

RALI 2005-QS1

RFMSI 2007-SA4

BSABS 2006-AC1

HVMLT 2003-1

RALI 2005-QS11

SABR 2006-FR1

CBASS 2001-CB4

HVMLT 2005-16

RALI 2006-QA7

SABR 2006-FR2

CBASS 2004-CB3

HVMLT 2005-4

RALI 2007-QA2

SABR 2006-FR3

CBASS 2004-CB4

HVMLT 2005-7

RAMP 2005-RS7

SABR 2006-FR4

CBASS 2004-CB7

HVMLT 2006-3

RAMP 2006-RS2

SASC 2004-13

CBASS 2005-CB1

HVMLT 2006-SB1

RAMP 2006-RS6

SASC 2006-GEL3

CBASS 2006-CB5

MABS 2003-OPT2

RAMP 2006-RZ2

SASC 2007-TC1

CBASS 2006-CB9

MABS 2004-OPT1

RAMP 2007-RS1

SVHE 2005-3

CBASS 2007-CB3

MABS 2005-FRE1

RASC 2001-KS1

SVHE 2006-NLC1

CMLTI 2007-SHL1

MABS 2006-AM1

RASC 2004-KS12

TBW 2006-1

DBALT 2005-1

MABS 2006-AM3

RASC 2005-AHL1

TBW 2006-3

DBALT 2005-AR2

MABS 2006-FRE2

RASC 2005-AHL3

TMST 2007-3

DBALT 2006-AR1

MALT 2006-1

RASC 2005-EMX3

 

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