Fitch Ratings has downgraded PHH Mortgage Corp.'s U.S. residential primary servicer ratings. The company's primary servicer rating for prime and Alt-A products has been downgraded from RPS1- to RPS2+, and for HELOC products, from RPS1- to RPS2.
PHH's specialty rating for subservicer products has also been dropped, from RPS1- to RPS2+.
The rating actions reflect the downgrade of PHH's issuer default rating and the continued pressure on PHH's financial flexibility in the increasingly challenged residential mortgage market, Fitch says. Financial condition is weighted more heavily for certain primary servicing products (e.g., HELOC), due primarily to the increased potential for advancing.
Fitch adds that it believes that PHH Mortgage continues to operate an effective servicing and subservicing platform.
SOURCE: Fitch Ratings