CitiMortgage Gets Top Fitch Rating
Fitch Ratings has upgraded the residential primary servicer rating for CitiMortgage to 'RPS1' from 'RPS1-minus,' moving the Citigroup subsidiary into the highest category for residential servicer ratings.
The rating is based on CitiMortgage's experienced management team, solid collateral performance, state-of-the-art risk management tools, comprehensive training programs and the financial strength of its parent company, Fitch said. Citigroup is rated 'AA-plus' by Fitch.
CitiMortgage is headquartered in Saint Louis and is one of the 10 largest home loan servicers in the nation. It has servicing platforms in Saint Louis; Farmington Hills, Mich.; Frederick, Md.; and Great Falls, Mont.
As of Sept. 30, 2002, the servicing portfolio consisted of about 795,000 prime mortgage loans with a principal balance of $111 billion, including 56% Fannie Mae or Freddie Mac loans and 18% government-backed loans. The company also makes home equity and subprime loans.
In November of last year, the company completed its acquisition of First Nationwide Mortgage Corp., which was part of Citigroup's acquisition of Golden State Bancorp. The First Nationwide operation was comprised of about 918,000 prime loans totaling $110 billion.
Fitch said that in tandem with its rapidly growing operations, CitiMortgage has demonstrated a strong commitment to develop its servicing platform by successfully consolidating default, investor services and post-close functionality, automating loan administration functions, strengthening procedures and controls, as well as continuing to enhance its technology.
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