NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned an issuer rating of BBB- with a Stable Outlook to AmeriHome Mortgage Company, LLC (AHM or “the Company”), a residential mortgage originator and servicer based in Woodland Hills, CA. Since its founding in 2013, the Company has become a top-five correspondent lender in the U.S.
The assigned BBB- issuer rating reflects the company’s solid profitability and low cost structure, experienced management team and growing market share. AHM’s exposure to credit risk is minimal as it purchases primarily conventional, Ginnie Mae, or agency mortgages. These positive elements are constrained, in part, by a reliance on short-term warehouse and secured funding and a relatively short operating history. As with other participants in the residential mortgage industry, AHM is somewhat exposed to interest rate volatility and is reliant on MSR hedging effectiveness to achieve consistent profitability. Also, the company faces a more competitive environment as lower lending volumes are projected for 2017.
The ratings were assigned using KBRA’s Finance Company Rating Methodology, published April 1, 2013.
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