Fitch Affirms Option One's Primary & Special Servicer Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 31, 2003 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 Option One Mortgage Corporation's (Option One) 'RPS1' primary servicer rating for subprime mortgage product and 'RSS1' residential special servicer rating. The 'RPS1' subprime rating is based on Option One's strong loan administration processes, seasoned servicing management team, successful utilization of a solid combination of proprietary and vendor technology applications, and established reliable internal controls. The 'RSS1' special servicer rating is based on Option One's proven abilities in collections, loss mitigation MITIGATION. To make less rigorous or penal. 2. Crimes are frequently committed under circumstances which are not justifiable nor excusable, yet they show that the offender has been greatly tempted; as, for example, when a starving man steals bread to satisfy , and real estate-owned (REO reo Noun NZ a language [Maori] ) liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy , particularly for subprime loan Subprime Loan A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Notes: Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. products. Option One has consistently demonstrated effective default management practices in its early and frequent borrower contact collection strategy, aggressive timeline
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The ratings are also indicative of Option One's continued efforts to leverage a combination of management expertise, technology, and sound servicing practices and controls to effectively manage its portfolio growth, through the continued development of its servicing platform. In the past eighteen months, Option One successfully opened a second servicing site in August 2002 in Jacksonville Jacksonville. 1 City (1990 pop. 29,101), Pulaski co., central Ark., inc. 1941. The city has varied industries, including printing and publishing and the manufacture of electronic equipment, ordnance, and plastic and metal products. , FL, capable of accommodating up to 500 employees, providing cash management, customer service and default management related services for a portion of the servicing portfolio. Option One also contracted with an offshore service provider in India, to provide additional customer service related processes as of July 2003. Option One anticipates that the new sites will provide its customers with faster service and improve overall operational efficiency. Fitch fitch: see polecat. will continue to monitor the impact of both Option One's recent expansion initiatives as well as its portfolio growth strategy on portfolio performance. As of Aug. 31, 2003 Option One's total servicing portfolio consisted of over 271,000 loans for a total balance of $35.8 billion, an increase of 18% by loan volume and 34.6% in dollar volume compared with the portfolio at July 31, 2002. Currently, over 75% of the portfolio is comprised of loans in private residential mortgage-backed securitizations, and over 99% of the portfolio is subprime loans. Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within each 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 and available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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