Fitch Updates Fairbanks Performance as Servicer for ContiMortgage Portfolio.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 30, 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. has released an updated study on Fairbanks Capital Corp.'s (Fairbanks) performance as servicer for the ContiMortgage (Conti Conti (kôNtē`), cadet branch of the French royal house of Bourbon. Although the title of prince of Conti was created in the 16th cent. ) loan portfolio. The report, which is an update to Fitch's 2001 review of Fairbanks' servicing performance with respect to the Conti portfolio, includes detailed ContiMortgage portfolio performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. for the period August 2000 through Oct. 31, 2002. Fairbanks assumed the servicing of the ContiMortgage portfolio on Aug. 1, 2000. At that time, the portfolio consisted of roughly 129,000 loans totaling $8 billion, of which 88% represented first lien subprime residential mortgages and 12% comprised second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the home equity loan products. The pool has paid down considerably and is now roughly 56% lower than its August 2000 balance, totaling $3.6 billion and consisting of 61,409 loans as of Oct. 31, 2002. The portfolio's balance has been declining at a monthly average of 1.8 times (x) faster than the delinquency balance causing total delinquencies as a percentage of the portfolio balance to grow. Based on the performance data provided by Fairbanks and analyzed by Fitch, Fitch believes that Fairbanks has effectively managed and stabilized a portfolio that has been plagued by inflated property values, faulty underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and prior ineffective default management practices. However, even with Fairbanks efforts to reduce the number of assets progressing to 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 , loss severities are expected to remain high. For a full copy of the report, visit the Fitch Ratings web site at 'www.fitchratings.com.' 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 'Rating Residential Loan Servicers  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. ,' dated Aug. 3, 1999 and available at 'www.fitchratings.com.' |
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