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Fitch Affirms Fay Servicing's U.S. RMBS Servicer Ratings; Outlook Stable.

New York: Fitch Ratings has affirmed the following U.S. residential mortgage servicer ratings for Fay Servicing LLC:

--U.S. residential primary servicer rating for Subprime product at 'RPS3+'; Outlook Stable;

--U.S. residential special servicer rating at 'RSS3+'; Outlook Stable.

The servicer ratings and Stable Outlook reflect Fay's experienced management and staff, high-touch servicing model, integrated servicing technology, and incremental improvements to its servicing platform. In addition, the ratings and Outlook reflect the financial condition of Fay, a non-publicly rated entity.

Fay, a wholly owned subsidiary of Fay Financial, LLC, a privately held company, is headquartered in Chicago with additional offices in IL, TX, and FL. As of June 30, 2017, Fay was servicing more than 53,000 loans totaling $11.2 billion, including more than 37,000 subprime loans totaling $7.3 billion.

Historically, Fay has boarded portfolios with a high volume of non-performing and distressed loans. In Fay's high-touch servicing model, account managers act as the single point of contact and handle customer service, collections, and loss mitigation calls with the borrower. Each account manager handles an assigned pool of loans, and is aligned with a specific investor to ensure that account managers are working with consistent guidelines towards the investor's goals.

Fay continues to make incremental improvements to its servicing platform. During the current review period, Fay enhanced its loan-boarding process, put in place additional controls and monitoring for payment processing, and implemented enhancements and new tools in its foreclosure process. Fay's most recent Regulation AB report did not contain any instances of material non-compliance.

Fay leverages a number of Black Knight Financial Services' applications, including its core servicing system Mortgage Servicing Package (MSP). In addition, Fay utilizes a proprietary loss mitigation-and-queuing portal that captures information from a variety of sources including MSP and prior servicer data. This portal allows account managers to review the borrower's budget and see the current loss mitigation status.

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 'Criteria for Rating U.S. and Canadian Residential and Small Balance Commercial Mortgage Servicers' dated February 2017, which is available at ''.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Mar 13, 2018
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