Two Get Ratings For Second Liens
Moody's Investors Service has recently issued second-lien servicer ratings to two mortgage servicers, Select Portfolio Services and National City.
Moody's assigned an "SQ2-" rating to Select Portfolio Servicing as a primary servicer of second-lien loans. Moody's said the rating reflects average collection abilities, above-average loss mitigation results and above-average servicing stability.
SPS, a subsidiary of Credit Suisse (USA) Inc., is integrating SPS into its residential mortgage-backed securities business. SPS also services loans for third parties.
SPS, based in Salt Lake City, also has significant offices in Jacksonville, Fla. SPS services approximately $26 billion in residential mortgage loans.
Separately, Moody's assigned National City Commercial and Consumer Loan Services an "SQ+" rating as a primary servicer of second-lien loans.
Moody's said the rating is based on National City's strong servicer stability. The rating agency also noted that parent company National City Corp. is rated "A1" for senior unsecured debt.
At the beginning of this year, National City's servicing portfolio consisted of approximately 559,000 home-equity lines of credit and 140,000 closed-end second-lien loans with a cumulative unpaid balance of $28.9 billion. The company's servicing operation is located in Cleveland. National City has also outsourced some back-office functions to India. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com