Fitch Ratings recently announced it assigned Financial Freedom Acquisition LLC, a subsidiary of OneWest Bank, FSB, a residential primary specialty reverse servicer rating of “RPS3-“. According to the press release, the drop in rating reflects the limited operating history of OneWest Bank, FSB, a newly formed, non publicly rated entity.
Headquartered in Irvine, CA, Financial Freedom continues to operate its servicing platform from Austin, TX and Kalamazoo, MI. As of February 2009, Financial Freedom serviced a portfolio of approximately 163,000 loans with a UPB of nearly $23.1 billion.
Fitch completed its operational review of the company’s reverse servicing platform in January 2009, prior to the completion of the sale, and confirmed that although the company experienced some operational challenges and disruptions during the past year, they continue to be a capable servicer with a demonstrated ability to adequately manage their reverse mortgage portfolio.
Fitch will continue to monitor Financial Freedom’s servicing platform and the potential effect the change in ownership may have on its loan servicing and operational capabilities.