Exhibit 99.1

 

 

 

PHH Mortgage Corporation Deloitte & Touche LLP
1661 Worthington Road #100 Suite 400
West Palm Beach, Florida 34409 Harborside Plaza 10
  Jersey City, NJ 07311
USA  
  Tel: +1 212 937 8200
  Fax: +1 212 937 8298
  www.deloitte.com

 

 

 

 

Independent Accountants’ Report

on Applying Agreed-Upon Procedures

 

We have performed the procedures described below, related to certain information with respect to a portfolio of mortgage loans in connection with the proposed offering of Ocwen Loan Investment Trust 2023-HB1 Asset-Backed Notes, Series 2023-HB1. PHH Mortgage Corporation (the “Company”) is responsible for the information provided to us, including the information set forth in the Statistical Data File (as defined herein).

 

The Company has agreed to the procedures and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the accuracy of certain information set forth on the Statistical Data File. Additionally, Nomura Securities International, Inc. (“Nomura”) (together with the Company, the “Specified Parties”) have agreed to the procedures and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all of the items of interest to a user of the report and may not meet the needs of all users of the report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. Consequently, we make no representations regarding the appropriateness of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

 

We performed certain procedures on earlier versions of the Statistical Data File and communicated differences prior to being provided the final Statistical Data File, which was subjected to the procedures described below.

 

Agreed-Upon Procedures

 

On June 2, 2023, representatives of the Company provided us with a computer-generated mortgage asset data file and related record layout containing data, as represented to us by the Company, as of the close of business March 31, 2023, with respect to 1,054 mortgage loans (“Statistical Data File”).

 

At the Company’s instruction, we performed certain comparisons and recomputations for each of the mortgage loans relating to the mortgage asset characteristics (the “Characteristics”) set forth on the Statistical Data File and indicated below.

 
 

••••••• 

 

Characteristics

1 Loan ID (for informational purposes only) 50 Term Months Left
2 Servicer (for informational purposes only) 51 Subsequent Interest Rate Cap
3 Subservicer Loan ID (for informational purposes only) 52 Lifetime Cap
4 FHA Case Number 53 Rate Index
5  Original UPB 54 Index Level
6 Current Total UPB 55 Rate Margin
7  Max Claim Amount 56 Interest Reset Frequency
8 Percent Max Claim 57 Property Type
9 Property Most Recent Appraisal Date 58 Property City
10  Property Most Recent Appraisal Value 59 Property State
11 Closing Date 60 Property Zip Code
12  Original Appraisal Value 61 Original Service Fee Set Aside
13 Status Description 62 Current Service Fee Set Aside
14 Due & Payable One Year Deadline 63 Original Repairs Set Aside
15 Due & Payable 1st Extension Deadline Date 64 Current Repairs Set Aside
16 Due & Payable 1st Extension Approved Date 65 Original First Year Prop Charge Set Aside
17 Due & Payable 2nd Extension Deadline Date 66 Current First Year Prop Charge Set Aside
18 Due & Payable 2nd Extension Approved Date 67 Original Taxes and Insurance Set Aside
19 GNMA Buyout Date 68 Current Taxes and Insurance Set Aside
20 FCL Confirmed Sale Date 69 Total Advance Balance
21 FCL 1st Legal Deadline Date 70 Curtailment Date
22 FCL 1st Legal Completed Date 71 Curtailment Reason
23 Default Type Description 72 Curtailed Flag
24 Called Due Type Description 73 Curtailed Amount (as of 12/21/22)
25 Default Date 74 Curtailed Amount (Projected Settlement End Date)
26 Called Due Date 75 HUD Insured Flag
27  UPB at Called Due Date 76 HUD Insured Status
28 Marketable Title Date 77 REO Flag
29 Borrower FICO 78 Status 2
30 Borrower Gender 79 Funding Date
31 Borrower DOB 80 Monthly Servicing Fee
32 Borrower Age 81 Servicing Fee Margin
33 Borrower Death Date 82 MIP Rate
34 Co-Borrower FICO 83 Monthly Payment
35 Co-Borrower Gender 84 Payment Type
36 Co-Borrower DOB 85 Next Rate Review
37 Co-Borrower Age 86 Property MIC Endorse Date
38 Co-Borrower Death Date 87  Original Principal Limit
39  Original Line of Credit Reserve 88 Due & Payable Appraisal Date
40 Current Line of Credit Reserve 89  Due & Payable Appraisal Value
41 Net LOC 90 FCL Appraisal Date
42 Principal Limit 91 FCL Appraisal Value
43 Original Note Rate 92 Short Sale Appraisal Date
44 Current Interest Rate 93 Short Sale Appraisal Value
45 Debenture Interest Rate 94 DIL Appraisal Date
46 Interest Rate Type 95 DIL Appraisal Value
47 Term Payment Frequency 96 Appraisal-Based Claim Date
48 Term Payment Amount 97 Owner Occupied
49 Payment Term    

 

We compared Characteristics 4. through 97. to the corresponding information set forth on or derived from electronic mortgage loan files, prepared, created and delivered by the Company, from the Servicer’s servicing system, as of close of business March 31, 2023 (except as noted above) (collectively, the “Servicer System File”).

 

 
 

 

For purposes of our comparison and at your instruction, with respect to our comparison of Characteristic 78., for mortgage loans with a status description (as set forth on the Servicer System File) of (i) “Liquidated/Held for Sale,” we were instructed to observe a status 2 of “REO” on the Statistical Data File, (ii) “Active,” we were instructed to observe a status 2 of “ABO” on the Statistical Data File and (iii) for all other status descriptions, we were instructed to observe a status 2 of “NABO” on the Statistical Data File.

 

The loan documents described above and any other related documents used in support of the Characteristics were provided to us by representatives of the Company and are collectively referred to hereinafter as the “Source Documents.” We were not requested to perform, and we did not perform, any procedures with respect to the preparation or verification of any of the information set forth on the Source Documents and we make no representations concerning the accuracy or completeness of any of the information contained therein. In addition, we make no representations as to whether the Source Documents are comprehensive or valid instruments or reflect the current prevailing terms with respect to the corresponding mortgage loans.

 

Agreed-Upon Procedures’ Findings

 

The results of the foregoing procedures indicated that the Characteristics set forth on the Statistical Data File were found to be in agreement with the above-mentioned Source Documents.

 

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We make no representations as to the (i) actual characteristics or existence of the underlying documents or data comprising the mortgage loans underlying the Statistical Data File or the conformity of their characteristics with those assumed for purposes of the procedures described herein, (ii) existence or ownership of the mortgage loans or (iii) reasonableness of any of the aforementioned assumptions, information or methodologies.

It should be understood that we make no representations as to questions of legal interpretation or as to the sufficiency for your purposes of the procedures enumerated in the preceding paragraphs. Also, such procedures would not necessarily reveal any material misstatement of the information referred to above. We have no responsibility to update this report for events or circumstances that occur subsequent to the date of this report.

 

We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants (“AICPA”). An agreed-upon procedures engagement involves the practitioner performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the purpose of the engagement and reporting on findings based on the procedures performed. We were not engaged to conduct, and did not conduct, an (i) audit conducted in accordance with generally accepted auditing standards or (ii) examination or a review engagement conducted in accordance with attestation standards established by the AICPA, the objective of which would be the expression of an opinion or conclusion, respectively, on the Statistical Data File. Accordingly, we do not express such an opinion or conclusion, or any other form of assurance, including reasonable assurance. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

 

We are required to be independent of the Company and to meet our other ethical responsibilities, as applicable for agreed-upon procedures engagements set forth in the Preface: Applicable to All Members and Part 1 – Members in Public Practice of the Code of Professional Conduct established by the AICPA. Independence requirements for agreed-upon procedure engagements are less restrictive than independence requirements for audit and other attestation services.

 

None of the engagement, procedures or report was intended to address, nor did they address, the (i) conformity of the origination of the assets to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) value of collateral securing such assets or (iii) compliance of the originator of the assets with federal, state, and local laws and regulations.

 

None of the engagement, procedures or report were intended to satisfy, nor did they satisfy, any criteria for due diligence published by a nationally recognized statistical rating organization.

 

 
 

This report is intended solely for the information and use of the Specified Parties identified above and is not intended to be and should not be used by anyone other than these Specified Parties.

Yours truly,

 

/s/ Deloitte & Touche LLP

 

June 2, 2023