NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned the following U.S. residential mortgage servicer rating to Statebridge Company, LLC's (Statebridge) sub-servicer mortgage operations:
--Initial U.S. residential primary specialty-subservicer rating 'RPS3-'; Outlook Stable.
Statebridge was established in 2008 and is majority-owned by FrontRange Capital Partners, LLC (FrontRange), a private equity firm. Other key owners are Kevin Kanouff, chief executive officer and David McDonnell, managing director. In addition, on June 23, 2014, Jay Memmott, with over 35 years of industry experience joined the company as the new president and chief operating officer.
FrontRange acquired a majority interest in Statebridge during the third quarter of 2013, after the prior joint business arrangement with Integrated Asset Services (IAS), a portfolio company of MBH Holdings ended.
Fitch assigned the specialty subservicer rating based on Statebridge's evidenced servicing capabilities. Also, Fitch believes that Statebridge has an experienced senior management team, developed recruiting, staffing, and retention programs, and developed loan and default administration capabilities. The rating also takes into consideration Statebridge's financial and business support from its parent company. In addition, the rating also considers Statebridge's limited operating history, recent change in ownership, and current portfolio size.
As of June 30, 2014, Statebridge sub-serviced 5,675 loans for approximately $1.08 billion. The servicer recently completed several strategic arrangements and is expanding its operation. The company anticipates that its portfolio will increase to 10,000 loans by year-end 2014.
Fitch's on-site observations are that Statebridge maintains an experienced servicing staff which is adequate for the size and type of portfolio currently being serviced. The servicer utilizes both vendor provided and its customized systems to adequately manage its portfolio. As of July 1, 2014, the servicer had 63 full time equivalents.
Fitch will continue to monitor Statebridge's expansion and success in growing its mortgage servicing operations.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Rating Criteria for Structured Finance Servicers' (Jan. 30, 2014);
--'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria'
(Jan. 31, 2014).
Applicable Criteria and Related Research:
Rating Criteria for Structured Finance Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750
U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria -- Effective January 31, 2011 to January 30, 2014
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=600065
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=842360
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.