Default Mgmt. Enhancements Lead To Nationstar Rating Upgrade

Posted by Orb Staff on October 01, 2010 No Comments
Categories : Mortgage Servicing

Fitch Ratings has upgraded Nationstar Mortgage LLC's primary servicer rating for subprime product to RPS2 from RPS2-. The rating action is based on Nationstar's solid management team, effective default management and loss mitigation practices, and continued investment in training and technology, Fitch says.

Nationstar is located in Lewisville, Texas, and has been operating since 1997. The company, which is owned by a Fortress Investment Group company, was servicing more than 233,000 loans totaling $34.3 billion at the end of June. The portfolio included more than 76,000 first- and second-lien subprime mortgages totaling $10.8 billion at the time.

Since Fitch's last review, Nationstar added 400 new full-time equivalent (FTE) positions, lowered its average number of loans per FTE to 240 from 299, improved its customer-service and collections-call metrics, and created a specialized team in customer service to handle loan modification inquiries.

The average speed to answer incoming calls in the customer service department decreased to 36 seconds from 66 seconds last year, and the abandonment rate decreased to 2.3% from 4.3%. Meanewhile, the average speed to answer incoming calls in the collections department decreased to 18 seconds from 30 seconds last year, and the abandonment rate decreased to 3% from 4%.

SOURCE: Fitch Ratings

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