Citing the company’s operational history, infrastructure and management as strengths, Fitch Ratings assigned residential mortgage servicer ratings to LoanCare.
Fitch assigned two servicer ratings for LoanCare: primary servicer rating for prime product of “RPS2-” and specialty sub-servicer rating of “RPS2-”. Both servicer ratings have a stable outlook, according to Fitch.
Fitch said that the ratings assignments and stable outlook are based on “LoanCare's established servicing platform, the servicer's comprehensive and highly integrated servicing technology, effective internal control environment, and experienced senior management team.”
Fitch also cited LoanCare’s "strategic managed growth" in expanding its servicing platform as another strength.
Fitch also noted that its ratings actions reflect the financial strength of LoanCare’s ultimate parent company, Fidelity National Financial (FNF), which acquired LoanCare in 2009.
“LoanCare follows the direction of the risk management programs and policies of its direct parent ServiceLink, which is an operating subsidiary of FNF,” Fitch noted.
“The program is designed to provide sufficient oversight of LoanCare's operation by identifying material risk inherent in its mortgage servicing activities to analyze and manage responses to those risks, and to oversee risk mitigation activities and report material risks to senior management and the board of managers,” Fitch continued. “Internal audit functions are performed by ServiceLink enterprise-wide, with results disseminated to the President of LoanCare and the board of managers.”
According to Fitch’s report, LoanCare has grown its portfolio to 560,959 loans totaling $110 billion from 92,000 loans, totaling $13.1 billion with a corresponding increase in staff to 651 from 123.
LoanCare's portfolio is further broken down as follows: 517,219 agency loans totaling $102 billion, 43,375 non-agency Prime RMBS loans totaling $7.5 billion, and 365 other loans totaling $35.2 million (includes subprime and ALT- A, and second liens), Fitch noted.
Fitch also said that LoanCare maintains “enhanced” customer service and client information technology systems and processes, which include interactive voice response and web capabilities, a mobile application for payments and website tracking for insurance, mortgage payments and loss mitigation status.
“Fitch will continue to monitor LoanCare's ability to maintain its strategic growth objectives operating as a non-bank servicer in a highly regulated environment,” Fitch concluded.