Fitch Affirms LoanCare, LLC's Servicer Ratings

NEW YORK--()--Fitch Ratings has affirmed LoanCare, LLC's (LoanCare) U.S. residential mortgage servicer rating:

--Primary servicer rating for prime product at'RPS2-'; Outlook Stable;
--Specialty sub-servicer rating at 'RPS2-'; Outlook Stable;

The rating affirmations and Stable Outlook are based on LoanCare's effective growth strategy, experienced senior management, adequate enterprise-wide risk management framework, and continued investment in systems and technology. In addition, the rating actions also reflect the financial strength of its ultimate parent Fidelity National Financial, Inc. (FNF), which acquired LoanCare in May 2009 and is rated 'BBB-'/Outlook Stable by Fitch.

LoanCare operates its mortgage loan servicing business primarily from its Virginia Beach, VA and Jacksonville, FL locations. The Florida location focuses on customer service and escrow administration, and acts as a backup to its main office in VA. The servicer also utilizes the Jacksonville, FL location to facilitate its component servicing operation.

LoanCare's president for 23 years, Gene Ross, is redirecting his efforts, taking on a business development and strategy role at the company, and effective Jan. 11, 2016, Dave Worrall, who has mortgage industry experience of over 19 years, has taken over as president and will be focusing on expanding its servicing operations. LoanCare has been building its subservicing platform since 1991 and indicated that it is focused on growing the business through its component subservicing capabilities while attracting new business through various partnership arrangements.

LoanCare's portfolio as of Dec. 31, 2015 was made up of approximately 535,000 GSE (FNMA, FHLMC) and GNMA loans totaling $104 billion and 40,000 other loans (owned portfolio and third-party servicing) totaling $7 billion.

The servicer continues to invest in customer service and client information technology systems and processes, which include interactive voice response and web capabilities, a mobile application for payments and website tracking for insurance, mortgage payments and loss mitigation status.

LoanCare follows the direction of the risk management programs and policies of its direct parent, ServiceLink NLS, LLC (ServiceLink), which is an operating subsidiary of FNF. The program is designed to provide oversight of LoanCare's operation by identifying material risk inherent in its mortgage servicing activities in order to analyze and manage responses to those risks, and to oversee risk mitigation activities and report material risks to senior management and the board of managers. Internal audit functions are performed by ServiceLink enterprise-wide, with results disseminated to the president of LoanCare and the board of managers.

LoanCare continues to invest in its platform to meet its growth objectives. Since 2013, the servicer has experienced servicing portfolio growth of 31% and plans on expanding its subservicing, private label and component servicing platforms throughout the year. The servicer also stated that it could leverage its parent's available corporate space for future growth.

Fitch will continue to monitor LoanCare's ability to maintain its strategic growth objectives while operating as a non-bank servicer in a highly regulated environment.

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 Apr. 23, 2015.

Additional Disclosures
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https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1000099
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https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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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
Zoya Ramzanali
Analyst
+1-212-612-7796
or
Committee Chairperson
Roelof Slump
Managing Director
+1-212-908-0705
or
Media Relations
Sandro Scenga, New York, +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
Zoya Ramzanali
Analyst
+1-212-612-7796
or
Committee Chairperson
Roelof Slump
Managing Director
+1-212-908-0705
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com