Fitch Affirms Selene Finance LP's U.S. RMBS Servicer Ratings

NEW YORK--()--Fitch Ratings has affirmed the U.S. residential mortgage servicer ratings for Selene Finance LP (Selene) with a Stable Outlook as follows:

--U.S. residential primary servicer rating for subprime product at 'RPS3+';

--U.S. residential primary servicer rating for prime product at 'RPS3+';

--Special servicer rating at 'RSS3+'.

The rating affirmations and Stable Outlook reflect Selene's strength as a high touch servicer, integrated technology systems, and continued evolving internal controls.

The ratings also reflect the servicer's evolving business strategy. Over the course of the review period Selene received a new equity partner, who is anticipated to aid the servicer in its future initiatives for portfolio growth. Fitch will monitor the company in the near term to review progress of upcoming initiatives related to sustaining its strategy for portfolio growth.

The ratings also take into consideration the financial condition of Selene, a non-Fitch rated entity, as financial condition is a component of Fitch's servicer ratings.

Selene is owned by Selene Ventures LLC (99% limited partner) and Selene Ventures GP LLC (1% general partner). Selene Holdings LLC is the parent company. Selene's servicing operation is headquartered in Houston TX, with additional servicing sites in Horsham PA and Jacksonville FL.

As of Sept. 30, 2014, Selene serviced over 92,000 loans with an unpaid principal balance (UPB) of over $14 billion. Selene's portfolio by loan volume comprised 72.5% government-sponsored enterprise (GSE), 13% subprime, 12% prime and 2.5% closed end seconds.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria', dated Jan. 30, 2014 which is available on the Fitch Ratings web site at 'www.fitchratings.com'.

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

Applicable Criteria and Related Research:

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

Applicable Criteria and Related Research:

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=960415

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Contacts

Fitch Ratings
Primary Analyst
Natasha Aikins, +1-212-908-0272
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Roelof Slump, +1-212-908-0705
Managing Director
or
Committee Chairperson
Suzanne Mistretta, +1-212-908-0639
Senior Director
or
Media Relations, New York
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Natasha Aikins, +1-212-908-0272
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Roelof Slump, +1-212-908-0705
Managing Director
or
Committee Chairperson
Suzanne Mistretta, +1-212-908-0639
Senior Director
or
Media Relations, New York
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com