Fitch Ratings said yesterday that it has affirmed Citi Residential Lending Inc.’s residential servicer ratings, formerly assigned to AMC Mortgage Services, Inc. Citi’s primary servicer rating for subprime product was affirmed at ‘RPS3+’ while its special servicer rating was affirmed at ‘RSS3+’. Fitch also said it has removed the ratings from a negative watch, indicating greater confidence in Citi’s platform stability going forward. From the press statement:
The rating actions and removal of the Rating Watch Negative reflect the financial strength of Citibank, rated ‘AA+’ by Fitch. The rating actions also reflect the challenges that still face the company in maintaining servicing quality and implementing its business strategy of servicing expansion through acquisitions, third party servicing and subservicing opportunities, in a continually volatile subprime mortgage market.
On August 31, Citigroup purchased the wholesale origination and servicing platform of ACC Capital Holdings, a move that led to the closure of former subprime retail giant Ameriquest Mortgage.