After assigning a negative outlook rating to the entire U.S. residential mortgage servicing industry in November, Fitch Ratings last week affirmed the servicer ratings for several large shops, including CitiMortgage, American Home Mortgage Servicing Inc. (AHMSI) and Carrington Mortgage Services LLC (CMS).
Citi's primary servicer ratings for prime, Alt-A and subprime products were affirmed at RPS1, RPS1 and RPS1-, respectively, and the company's master servicer rating was affirmed at RMS1. AHMSI's primary servicer ratings for prime, Alt-A and subprime products were affirmed at RPS2-, RPS2- and RPS3+, respectively. Its primary specialty servicer rating for closed-end seconds and its special servicer rating were affirmed at RPS2- and RSS2-, respectively. Fitch also affirmed CMS' primary servicer rating for subprime product and special servicer rating at RPS3- and RSS3, respectively.
Fitch says that responses to a recent survey of its rated servicers regarding internal procedures used to verify and execute foreclosure affidavits indicate that all servicers are taking the matter seriously and are continuing to work to resolve any issues uncovered.
The rating agency adds that it may place an individual servicer's ratings on ‘rating watch negative’ or downgrade the ratings if the servicer does not diligently and timely review its processes and take immediate action to correct any foreclosure action or documentation failures.
SOURCE: Fitch Ratings