NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the U.S. residential primary servicer ratings for Carrington Mortgage Services, LLC (Carrington) with a Stable Outlook as follows:
--U.S. residential primary servicer rating for subprime product at 'RPS3;
--Special servicer rating at 'RSS3'.
The rating affirmation and Stable Outlook reflect Carrington's high-touch servicing model; established internal controls; established technology to support key business initiatives; and evolving portfolio profile.
The ratings also take into consideration the financial condition of Carrington, a non-rated Fitch entity, as financial condition is a component of Fitch's servicer ratings.
Fitch believes that Carrington continues to maintain a capable servicing operation with the staff, procedures and controls, default management processes, and technology to manage its current servicing portfolio. However, management indicated it anticipates its performing portfolio increasing from organic growth. While Fitch believes management has the necessary plans regarding staffing, training, and oversight, Fitch will monitor CMS' evolving portfolio profile.
Carrington operates its servicing platform from Santa Ana, CA and Fishers, IN with a total of 437 full-time equivalent (FTE) servicing employees as of Sept. 30, 2014. Carrington services over 145,000 loans totaling $20.4 billion, mostly 1st and 2nd lien subprime loans. The portfolio included approximately 38,700 primary serviced loans and 1,900 special serviced non-agency RMBS loans.
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:
--'Global Rating Criteria for Structured Finance Servicers'
(Jan 30, 2014);
--'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
Global Rating Criteria for Structured Finance CDOs
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751136
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=960375
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