Home Loan Servicing Solutionsplans to issue $800 million of securities backed by mortgage servicer advance receivables.

The issuer will offer investors two series of notes from its HLSS servicer advance receivables master trust.

Both series are backed by are backed by servicer advance and servicing fee advance receivables. The receivables are created through the servicer's advancing obligations under the designated servicing agreements (DSAs) and deferred servicing fees.  Servicer advance receivables made on residential mortgage loans are usually repaid at the top of the underlying deal’s waterfall.

Standard & Poor’s assigned preliminary ratings to the notes. The series 2014-T1 and series 2014-T2 notes will offer notes ranging from ‘AAA’ to ‘BBB’, according to the presale report.HLSS was formed by Ocwen Financial Corporation to acquire mortgage servicing assets consisting of mortgage servicing rights, rights to fees and other income from servicing mortgage loans, and associated servicing advances.  

S&P said that it expected $5 billion of mortgage servicer advance securitizations this year, down from 2013’s $6.5 billion.

 

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