American Home Mortgage Servicing (AHMSI) this week will start servicing loans from six RMBS transactions that were serviced by the now-bankrupt Taylor, Bean & Whitaker (TBW), according to Moody's Investors Service.
"Transferring servicing to a stable platform should eventually prove a positive for the RMBS pool's performance," Moody's says in a report by vice president and senior analyst Sally Acevedo. "We say 'eventually,' because regulators froze the transaction accounts held at the failed Colonial Bank in mid-August.
Their resolution remains a work in progress." Wells Fargo Bank terminated TBW as servicer almost two weeks before TBW's bankruptcy filing, according to Moody's. "It took two months, following multiple court proceedings to finally transfer servicing," the rating agency said, noting that "the transfer happened only after Wells Fargo and TBW struck a behind-the-scenes deal blessed by the court."
In the interim — and until more information about the effectiveness of what is now a potential transfer is known — notes in the deals that once carried the highest rating of 'Aaa' will remain at a lower 'Aa3' rating with the direction of that rating uncertain.
"Most of the other notes have been placed on review for possible downgrade," Moody's added. An AHMSI representative confirmed the transfer. Wells declined to comment.