KBRA said its loss model is highly sensitive to the increased probability of default associated with mortgages that have high combined LTV ratios.

In recent years, Redwood has focused on jumbo mortgages but the REIT is now placing a greater emphasis on conforming loans.

Wells Fargo remained the most dominant lender in the sector with $42.28 billion of jumbo originations in 2014, down 2.5 percent from the year before.

Nearly $1.0 billion in non-agency MBS was included in the rating action by Fitch.

In case you’re wondering, Ocwen services roughly $208 billion of non-agency product.

“Due to our ponderous judicial system, most of the options have been exhausted, and the judges are now expediting the [foreclosure] process,” said Mike Pappas, president and CEO of the Keyes Company.

Analysts believe BlueMountain’s play is to ultimately drive down Ocwen’s share price and clean up on its short positions.

Ocwen’s massive servicing portfolio (roughly $377 billion in UPB) is worth more than the entire market capitalization rate of the company...

Ocwen’s share price has almost doubled! How’s that? Well...

The due diligence findings must be published within five days after a deal prices.