The interest shortfalls are a result of a recoupment of prior servicer advances and modifications on delinquent loans by Nationstar. Fitch currently expects the interest shortfalls to be repaid but recovery is not certain at this point as additional servicer advance recoupments are possible. Nationstar expects additional transactions may be affected by servicer advance recoveries in the next few distribution dates. Fitch expects to resolve the Rating Watch status within 90 days.
The following classes are placed on Rating Watch Negative:
KEY RATING DRIVERS
The recent servicing transfer has resulted in a change of servicer advancing policy and a recoupment of prior servicer advances, resulting in an interest shortfall to some classes.
The resolution of the Rating Watch status will depend on the repayment of the interest shortfalls. The interest shortfall repayment will be sensitive to the future collateral performance of the mortgage loans and the servicer advancing practices of the current servicer.
Additional information is available at 'www.fitchratings.com'.
--'U.S. RMBS Surveillance Criteria' (
--'Global Structured Finance Rating Criteria' (
--'U.S. RMBS Loan Loss Model Criteria' (
--'U.S. RMBS Cash Flow Analysis Criteria' (
--'Criteria for Interest Rate Stresses in Structured Finance Transactions' (
--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions' (
--'Counterparty Criteria for Structured Finance and Covered Bonds' (
--'Structured Finance Recovery Estimates for Distressed Securities' (
U.S. RMBS Surveillance Criteria
Global Structured Finance Rating Criteria
U.S. RMBS Loan Loss Model Criteria -- Amended
U.S. RMBS Cash Flow Analysis Criteria
Criteria for Interest Rate Stresses in Structured Finance Transactions
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions
Counterparty Criteria for Structured Finance and Covered Bonds
Structured Finance Recovery Estimates for Distressed Securities
Source: Fitch Ratings
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