Nonprime Servicer's Rating Improved

Fitch improves servicer ratings for Specialized Loan Servicing
By MortgageDaily.com staff
12/28/2005

A relatively new Colorado-based company saw its nonprime servicer ratings improved.

Specialized Loan Servicing LLC's residential primary servicer ratings for Alt-A and subprime loans was raised to 'RPS3' from 'RPS3-', according to an announcement from Fitch Ratings today. The special servicer rating was raised to 'RSS3' from 'RSS3-'.

Fitch also assigned the Highlands Ranch, Colo.-headquartered company a primary servicer rating of 'RSP3' for home equity lines of credit.

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

The improvement in the primary servicer ratings was based on Specialized's "experienced management team, robust technology platform, and established loan administration controls," the statement said. The special servicer rating was attributed to capable default management and asset liquidation methodologies, successful borrower contact and loss mitigation strategies.

Specialized, which has been servicing loans for about two years, serviced 68,602 loans for $6.9 billion as of September, Fitch said.

While the company reportedly focused on establishing its servicing platform this year, it plans to improve operational efficiencies, expand product diversity and increase its servicing portfolio during 2006.

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