At this time, the company has informed Moody's that it is negotiating a potential restructuring. Moody's said future ratings adjustments will be impacted by the company's ability to restructure. Moody's noted that the troubles at MLN have the potential to impact residential mortgage-backed securities backed in whole or in part by loans originated or serviced by MLN. Although Moody's feels it is too soon to determine which specific transactions may be affected, the level of impact will depend primarily upon the proportion of loans serviced by MLN as well as the proportion of MLN-originated loans in a given transaction and the performance of these loans. Moody's SQ ratings represent its view of a servicer's ability to prevent or mitigate asset pool losses across changing markets. The rating scale ranges from SQ1 (strong) to SQ5 (weak). Where appropriate, a "+" or "-" modifier will be appended to the relevant rating to indicate a servicer's relative servicing quality within a particular category.