Fitch Affirms National City Home Loan Services 'RPS2-' and 'RSS3+' Servicer Ratings.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms National City Home Loan Services, Inc.'s (HLS (Hue Lightness Saturation) A color space that is closely related to HSB, except that Brightness is called Lightness and is measured from 0 to 1 rather than from 0 to 100%. See HSB. ) residential primary servicer ratings for Alt-A and subprime products at 'RPS2-' and affirms its special servicer rating at 'RSS3+' for residential mortgages. The primary servicer ratings are based on HLS' capable senior management team, solid loan administration procedures, as well as focused training and quality control programs. The special servicer rating is based on the company's ability to effectively manage and liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the non-performing residential mortgage loans and real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most (REO reo Noun NZ a language [Maori] ) assets. The ratings also reflect the financial strength of HLS' parent, National City Corporation (NCC NCC See National Clearing Corporation (NCC). ), rated 'AA-' by Fitch. HLS' servicing operation is headquartered in Pittsburgh, PA and performs branded servicing for NCC's affiliate, First Franklin Financial Corporation (FFFC FFFC Force Flow Fusion Center ). As of December 2004, HLS serviced nearly 180,000 loans totaling almost $23 billion, an increase of 17% by loan volume and 23% by dollar volume since December 2003. The portfolio is composed of 81% sub-prime product and 15% Alt-A mortgages. Over the last year, HLS has continued to refine its servicing platform through operational improvements that further enhance the efficiencies and productivity of the company. In September 2004, former HLS chief financial officer Nanette Stevens was named as general manager of HLS, where she had been serving in an interim capacity since June 2004. HLS has informed Fitch that it does not anticipate additional organizational restructurings as a result of the leadership change. In addition, HLS indicated that its long-term strategy of providing branded servicing for FFFC remains intact and that its plans to develop relationships with current and potential FFFC investors will serve to provide additional servicing volume in 2005. HLS also completed the planned relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of its customer service and collections functions to an upgraded call center facility in nearby Upper St. Clair, PA, which has facilitated HLS' ability to merge its collections and customer service units. As part of the call center relocation, HLS completed several technology upgrades that further expand the company's capacity to support a growing portfolio. Fitch believes that HLS is adequately positioned with capacity, systems and staff to support its projected growth. However, Fitch will continue to monitor HLS' ability to maintain performance as it pursues its growth initiatives and its strategic business plan. Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on the review and rating process for servicers, see Fitch Research on 'Residential Mortgage Servicer Ratings,' dated Feb. 21, 2003, available on the Fitch Ratings web site at www.fitchratings.com. |
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