Ocwen Financial’s termination as servicer of two residential mortgage securitizations has no immediate impact on the strength of the company, but it does set a “negative precedent” that could eventually lead to the servicer being fired from more deals, Moody’s Investors Service warns.

In February Wells Fargo informed Ocwen that investors in two RMBS representing $264 million in unpaid principal had voted to transfer servicing to Select Portfolio Services, a unit of Credit Suisse. The vote followed Moody’s downgrade of Ocwen’s servicer rating, which triggered an event of default in these and eight other deals.

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