Fitch Upgrades Shellpoint Mortgage Servicing

NEW YORK--()--Fitch Ratings has upgraded the following U.S. residential mortgage servicer ratings for Shellpoint Mortgage Servicing (Shellpoint) formerly known as Resurgent Mortgage Services, and assigned a Stable Outlook:

--U.S. residential primary servicer rating for Prime product to 'RPS3+' from 'RPS3';

--U.S. residential special servicer rating to 'RSS3+' from 'RSS3'.

On Feb. 25, 2014, Fitch placed Shellpoint on Rating Watch Positive based on the servicer's management and infrastructure and demonstrated proficiency in its procedures, controls and loan administration functions. In addition, the servicer had expanded its default management platform and shown success in recruiting experienced managers and growing its portfolio.

Shellpoint has exhibited strong growth in its servicing portfolio. Fitch's review indicates that the portfolio grew to 98,915 loans as of June 30, 2014, from 78,515 since its last review date of Dec. 31, 2013, with a corresponding increase in staff to 336 from 267. The servicer stated that it anticipates total portfolio by Dec. 31, 2014 of approximately 115,000 loans. Fitch believes that Shellpoint is effectively managing its growth through enhancements to its technology systems, and through additions to its staff and management team.

The upgrade and Stable Outlook reflect Shellpoint's effectiveness in maintaining its growth objectives, developing its corporate governance oversight program, and finalizing its new ownership structure, effective March 2014. The ratings incorporate the financial condition of Shellpoint's parent company, New Penn, a non-publicly rated entity, as financial condition is a component of Fitch's servicer ratings.

Shellpoint's primary servicing site is located in Greenville, Texas, while their Houston, TX office provides additional staffing for redundant functions covering foreclosure, loss mitigation, default support, and investor reporting. Fitch will continue to monitor the performance of Shellpoint's servicing operations as it continues to expand and grow its servicing portfolio.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria', dated Jan. 30, 2014;.

--'Rating Criteria for Structured Finance Servicers', dated Jan. 30, 2014.

Applicable Criteria and Related Research:

Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731747

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=903614

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Contacts

Fitch Ratings
Primary Analyst
Michael Laidlaw
Director
+1 212-908-0251
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst
Roelof Slump
Managing Director
+1 212-908-0705
or
Committee Chairperson
Suzanne Mistretta
Senior Director
+1 212-908-0639
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Michael Laidlaw
Director
+1 212-908-0251
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst
Roelof Slump
Managing Director
+1 212-908-0705
or
Committee Chairperson
Suzanne Mistretta
Senior Director
+1 212-908-0639
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com