Fitch Upgrades SunTrust’s Primary Servicer Rating

Posted by Orb Staff on May 28, 2010 No Comments
Categories : Mortgage Servicing

Ratings has upgraded SunTrust Mortgage Inc.'s residential primary servicer rating for prime product to RPS2+ from RPS2. The rating is based on the company's experienced and tenured senior and mid-level management teams, effective systems processes and procedures, as well as the financial strength of SunTrust Mortgage's parent, SunTrust Banks Inc. SunTrust Mortgage is headquartered in Richmond, Va., and originates and services a range of prime residential mortgages nationwide through its retail, wholesale and correspondent channels. As of March 31, the company serviced 996,366 residential mortgage loans totaling approximately $166 billion. The servicer has completed the merger of its consumer lending and mortgage operations under one management structure, Fitch says. The process was initiated in late 2008, focusing on default management for both SunTrust's mortgage and consumer lending groups. SunTrust has continued to upgrade its default management departments through enhanced technology and implementation of new processes and procedures to aid its portfolio performance and improve customer contact. In addition, the company maintains its policy of hiring senior line managers and continued to enhance its processes and procedures for collections, loss mitigation, compliance, risk analyses and real estate owned functions, Fitch reports. The servicer also implemented increased training for new recruits in loss mitigation and has developed stronger ongoing on-the-job training. However, the number of hours for training existing staff remains less than expected by Fitch, the rating agency notes. SOURCE: [link=http://www.fitchratings.com]Fitch Ratings

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