Fitch Upgr Cendant Mortgage's Resi Svr Rtg to 'RPS1-', Assigns 'RPS2+' To Home Equity.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 20, 2002 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. upgrades Cendant Mortgage Corp.'s (Cendant) residential primary servicer rating for prime product to 'RPS1-' from 'RPS2+'. Fitch also assigns to Cendant its 'RPS2+' rating for primary servicer of home equity and home equity lines of credit (HELOC HELOC Home Equity Line Of Credit ) loans. The 'RPS1-' rating reflects Cendant's continued solid collateral performance, seasoned servicing management team, tested internal controls, robust technology platform, as well as the financial stability of its parent, PHH PHH Provinciale Handelsschool Hasselt (school) PHH Pasukan Anti Huru-Hara (Anti Riot Task Force) PHH Phillips Head (screw) PHH Planar Halogenated Hydrocarbon Corporation, which is rated 'BBB+' by Fitch Ratings. The new 'RPS2+' rating for home equity and HELOC loans reflects Cendant's established internal controls, solid loan administration processes, and effective default management practices for second liens 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 . Cendant Mortgage, headquartered in Mt. Laurel, NJ, has been servicing prime product for over 24 years. As of September 30, 2002 Cendant serviced a residential portfolio of over 811,000 loans for over $111.8 billion, including over 36,000 home equity line of credit (HELOC) loans. The majority (over 77%) of the servicing portfolio is comprised of Fannie Mae Fannie Mae: see Federal National Mortgage Association. , Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. , and Ginnie Mae Ginnie Mae: see Federal National Mortgage Association. servicing. Cendant continues to proactively improve its servicing platform through the implementation of robust internally developed and vendor technologies, an expanded training curriculum, addition of junior level managers, updated internal controls, and enhancements to its investor reporting capabilities. Fitch will continue to monitor the company's performance and evaluate its progress in effectively managing its operations and growth initiatives. 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, dated August 3, 1999, available on Fitch's web site at 'www.fitchratings.com'. |
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