Fitch Ratings upgraded its rating for Denver-based mortgage servicer Statebridge Company, moving it to 'RPS3' from 'RPS3-', with a “Outlook Stable” rating.
Thomas Crowe, a senior director in Fitch’s U.S. RMBS group, explained that Fitch looks at the servicers once a year to update the rating. He noted that what’s important in the updated review is the change from an 'RPS3' from 'RPS3-,' opposed to the “Housing Stable” wording, which is more forward looking.
The servicer was originally given its first rating of “Outlook Stable” back in July 2014 due to its experienced senior management team, developed recruiting, staffing, and retention programs, along with developed loan and default administration capabilities.
The upgrade this time is based on improvements in similar characteristics at the company.
“The rating actions also take into consideration Statebridge's successful execution of its key servicing objectives, effective risk management practices and the increased use of automated functionalities in its new loan boarding, vendor management, bankruptcy, and loss mitigation processes,” the report said.
“Fitch believes the servicer maintains effective systems and processes to adequately manage its servicing functions,” it continued.
The company has also expanded its operational capacity and completed the insourcing of its REO department and has a manager and support team in place.
Since the first rating, the servicer has increased its sub-servicing portfolio to approximately 11,500 loans totaling $1.6 billion, up from 5,675 loans for $1.08 billion.
Statebridge also increased full time equivalent positions to 87 from 55, and added senior management talent, which include a new corporate counsel, human resources, real estate owned, foreclosure and vendor oversight managers.
Most recently, Statebridge Company hired Brad Young as its director of business development, where he will be responsible for implementing the business development strategy for the continued growth of the company.
In October 2014, Freddie Mac approved Statebridge as a servicer, fulfilling one of its strategic goals, set when it was founded in 2008.