Fairbanks Praised For Conti Work
Fitch Ratings has released a report saying that Fairbanks Capital "has effectively managed and stabilized" the portfolio of loans it took over from the failed ContiMortgage.
Fairbanks assumed the servicing of the ContiMortgage portfolio on Aug 1, 2000. At that time, the portfolio
consisted of roughly 129,000 loans totaling $8 billion, according to the Fitch report. 88% of the portfolio consisted of first lien subprime residential mortgages and 12% consisted of second lien home equity loan products.
The pool has paid down considerably and is now roughly 56% lower than its August 2000 balance, totaling $3.6 billion, Fitch said.
The paydown has caused delinquencies as a percentage of the portfolio balance to grow, Fitch said. Fitch said Fairbanks has turned around a Conti portfolio that "has been plagued by inflated property values, faulty underwriting and prior ineffective default-management practices."
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