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.
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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