Moody's: Regions Is Deemed Stable
Regions Financial Corp. and AmSouth Bancorporation are pursuing a merger that will create a top 10 bank holding company under the Regions Financial name.
Rating agency Moody's Investors Service said the merger is not likely to affect the residential mortgage servicer quality ratings of Regions Mortgage, which currently is rated "SQ2" as a primary servicer of prime and alt-A loans and rated "SQ2-" as a primary servicer of subprime credit quality loans.
"At this time we anticipate that the merger will have essentially a neutral impact on Regions' servicing platform," Moody's said in a press release.
Regions Financial and AmSouth are both based in Birmingham, Ala. In 2005, AmSouth originated $7.6 billion of home loans. Regions originated $7.2 billion, according to this newspaper's Quarterly Data Report.
The two companies will have a combined servicing portfolio of $51.3 billion, National Mortgage News estimated at the time of the merger announcement. Regions has the larger portfolio, totaling $36.8 billion at the end of last year, and AmSouth serviced $14.6 billion. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com