Ocwen Financial's agreement to write down $2 billion in principal of the mortgage it services should not impact Fitch Ratings’ assessment of any of the bonds backed by these mortgages.

Principal write downs typically have a negative impact on the performance of residential mortgage backed securities (RMBS) by interrupting cash flows to bond holders. But in a report released today, Fitch said that the terms of the settlement are largely consistent with Ocwen’s existing programs and will not result in the servicer writing down principal any more aggressively than it currently does.

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