PHH Servicer Ratings Improved

Fitch improves HEL & HELOC primary servicer rating
By MortgageDaily.com staff
12/30/2005

PHH Mortgage Corp. got some good news from a major ratings agency.

The Mt. Laurel, N.J.-based lender's residential primary servicer rating for home equity and home equity line-of-credit products was raised to 'RPS1' from 'RPS1-' by Fitch Ratings.

The action reflects a "tenured and experienced management team, impressive technology platform, and extensive risk management practices," as well as the solid financial condition of parent PHH Corp., according to Fitch's announcement Thursday. In addition, PHH has improved customer service practices, upgraded its technology and tightened internal controls over the past year.

The ratings agency rates servicers on a scale of one to five -- with one being the highest, and further differentiates ratings with a plus (+), minus (-) or flat rating.

Fitch also said it affirmed PHH's residential primary servicer ratings for prime and Alt-A products at 'RPS1'.

PHH serviced 914,000 loans for $146.7 billion, according to its third quarter third quarter earnings statement. Fitch noted $89 billion is conforming conventional loans, $41 is jumbo loans and the rest is government and nonprime loans.

PHH reportedly services approximately 51,000 HELOC loans for more than $2.5 billion for third-party clients.

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