Fitch Assigns Initial RMBS Servicer Ratings to Rushmore Loan Management Services

NEW YORK--()--Fitch Ratings has assigned the following U.S. residential mortgage servicer ratings to Rushmore Loan Management Services (Rushmore):

--Initial U.S. residential primary servicer rating for Prime product of 'RPS3'; Outlook Stable;

--Initial U.S. residential primary servicer rating for Subservicing of 'RPS3'; Outlook Stable;

--Initial U.S. residential special servicer rating of 'RSS3'; Outlook Stable.

The rating actions are based on Rushmore's robust high-touch servicing model; integrated servicing technology; strong internal control environment; and experienced management and staff. The ratings also incorporate the financial condition of Rushmore, a non-publicly rated entity.

Rushmore is wholly-owned subsidiary of Roosevelt Management Company (Roosevelt), an investment management firm. Roosevelt focuses on investment advisory and asset management of seasoned residential mortgage loans, including non-performing mortgage loans, sub-performing loans, seasoned performing first and second liens, real estate owned (REO), defaulted second liens and home equity lines of credit.

Rushmore historically has boarded a mixture of performing, re-performing, and non-performing loans. The company is an approved seller/servicer for Fannie Mae, Freddie Mac, and Ginnie Mae, and is licensed to operate as a mortgage loan servicer in all 50 states, Washington DC, and Puerto Rico. Rushmore has servicing sites in Irvine CA, Dallas TX, and Puerto Rico. The Puerto Rico site was recently established and currently handles default servicing on loans secured by properties in Puerto Rico. As of Dec. 31, 2014, Rushmore was servicing more than 42,400 loans totaling $7.8 billion.

Rushmore's high-touch servicing model provides for the assignment of an account resolution specialist (ARS) as the single point of contact for all loans 35 or more days past due, or identified as being in imminent default. The ARS's follow an account ownership model and are aligned by investor.

Rushmore utilizes an industry standard core servicing system augmented by a number of vendor and proprietary systems. Proprietary systems include a workflow tool and a decision engine for loss mitigation, a data extraction tool, and a centralized datamart.

Rushmore's internal control environment incorporates an enterprise risk management (ERM) committee that meets monthly to identify, manage and report on the overall risks across the company. The ERM committee reviews findings from quality control, compliance, quality assurance, and internal audit. Internal audit is outsourced to an established independent auditing firm.

Rushmore has experienced managers and staff for all servicing functions. Senior management averages over 26 years of industry experience, and group and functional managers average over 18 years and 17 years, respectively. A number of managers worked together at previous employers. In addition, the servicing staff averages over 12 years of industry experience.

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. 31, 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=981078

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Contacts

Fitch Ratings
Primary Analyst
Thomas Crowe
Senior Director
+1-212-908-0227
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst
Roelof Slump
Managing Director
+1-212-908-0705
or
Committee Chairperson
Grant Bailey
Managing Director
+1-212-908-0544
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Thomas Crowe
Senior Director
+1-212-908-0227
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst
Roelof Slump
Managing Director
+1-212-908-0705
or
Committee Chairperson
Grant Bailey
Managing Director
+1-212-908-0544
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com