Standard & Poor's placed its Above Average rankings on Ocwen Loan Servicing on CreditWatch negative as a residential mortgage subprime, special, and subordinate-lien servicer. Before these CreditWatch placements, the outlook was stable.
The rating agency placed the rankings on CreditWatch negative as a result of Ocwen's recent purchase of GMAC Mortgage (GMACM), Residential Capital's (ResCap) mortgage loan servicing unit. ResCap is the residential mortgage unit of Ally Financial. The purchase comes after Ocwen on Oct. 3 announced that it was buying Homeward Residential, which is another large mortgage servicer.