Senior mortgage bond holders that are being serviced by Litton Loan Servicing could be in for some cash flow disruptions because of the Ocwen deal, according to a new report from Moody’s Investor Servicer.

The acquisition of Litton by Ocwen “will change Litton’s current servicing and advancing practices, which could disrupt monthly cash distributions to Litton-serviced RMBS transactions,” writes Moody’s analyst Gerard Mazi and his partners.

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