Robust Environments

Recent subprime and \"Alt-A\" RMBS servicer ratings actions
By CHRISTY ROBINSON
12/18/2002

Fitch Ratings assigned Bank of America Mortgage's residential primary servicer rating to"RPS1-" rating for Alt-A product. The rating was based on Bank of America's experienced management team, strong financial performance, and a robust internal control environment, Fitch said. The rating also reflects Bank of America Mortgage's solid performing loan management and advanced integrated technology. Headquartered in Charlotte, N.C., Bank of America Mortgage is recognized as a leading originator and servicer of prime and Alt-A prime residential mortgage loans, Fitch said. As of Aug. 31, Bank of America Mortgage serviced over 2.5 million loans totaling $274.4 billion, of which $166.7 was Fannie Mae, Freddie Mac, and Ginnie Mae conventional mortgage loans.

Fitch upgraded Aurora Loan Services' residential primary servicer rating for Alt-A product from "RPS2" to "RPS2+" and affirmed its master servicer rating of "RMS2+". The primary servicer rating was based on Aurora's continued effective loan administration processes in servicing Alt-A loan products, as well as the financial strength of its parent, Lehman Brothers Holdings Inc, and its experienced management team, Fitch said. The rating also reflects Aurora's solid servicing, which was developed through an extensive background in various servicer product types, combined with the company's proficient application of its creditable technology platform.

Fitch affirmed Provident Funding Associates, L.P.'s "RPS3" residential primary servicer ratings for Alt-A products. The rating was based on the continued solid performance of Provident's portfolio and the company's experienced management team, Fitch said. The rating also reflects the infrastructure developed by Provident, which effectively services the company's strong quality portfolio. Provident is based in Burlingame, Calif., and is one of the largest privately held, non bank-owned mortgage lenders in the United States, Fitch said. It was founded in 1992, and had more than $15 billion in loan production in 2002. The company's servicing portfolio has grown from nearly 20,000 loans for $2.7 billion at Dec. 31, 2000, to more than 103,000 loans for over $17.5 billion as of Sept. 30, 2002.

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