Fitch Assigns 'RPS2-' RMBS Servicer Rating For HSBC Finance Corporation.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. assigns HSBC Finance Corporation an 'RPS2-' residential primary servicer rating for subprime product. The primary servicer rating reflects the experienced management team, capable loan administration policies, effective default management procedures, and competent use of technology. The ratings also reflect the HSBC Finance Corporation's financial strength, rated 'AA-'/'F1+' by Fitch; Rating Watch Positive. HSBC Finance Corporation is an indirect wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) Holdings plc. In March 2003, HSBC Holdings plc acquired Household International, Inc. HSBC Finance Corporation was created through the merger of Household International, Inc. and its primary operating subsidiary, Household Finance Corp. in December 2004. HSBC Holdings plc has demonstrated its commitment to HSBC Finance Corporation through operational support and integration, inter-company funding, and renaming the company with the HSBC brand name. HSBC Finance Corporation's consumer lending operation has a network of approximately 1,400 offices in 46 states and over 3,200 servicing employees. The company, through its various subsidiaries, is a leading provider of consumer finance products including subprime real estate loans, revolving and closed-end unsecured personal loans, automobile loans, credit cards, and tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. anticipation loans. The company has servicing operations in Elmhurst, IL, Carmel, IN, London, KY, Chesapeake and Virginia Beach, VA, and Hyderabad, Vizag, and Bangalore, India. HSBC Finance Corporation offers home loans with predominantly fixed and/or declining interest rates. As of Dec. 31, 2005, HSBC Finance Corporation serviced over 315,000 subprime residential closed-end mortgage Closed-end mortgage Mortgage against which no additional debt may be issued. closed-end mortgage A mortgage with a prohibition against additional borrowing using the same lien. loans with an aggregate principal balance of over $33 billion. Over 98% of the closed-end portfolio is fixed rate loans, with approximately 12% included in RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities transactions. HSBC's collection and loss mitigation techniques include repayment plans, automatic deferrals, rate modifications, re-writing delinquent loans into new loans, short sales, and deeds-in-lieu. Fitch's review confirmed that HSBC Finance Corporation has the requisite management, training, technology, and controls necessary to manage its portfolio and projected growth. However, Fitch will continue to monitor HSBC Finance Corporation's ability to maintain its performance while pursuing its growth initiatives, as well as the company's use of automatic deferrals and rate modifications. 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 Fitch's residential servicer rating program, please see Fitch's report 'Residential Mortgage Servicer Ratings', dated June 21, 2006, which is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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