Ratings Roundup: Centex Praised for Early Collections, Loss Mitigation
Fitch Ratings has upgraded Centex Home Equity Co.'s rating for primary servicing of subprime home loans to "RPS2-plus" from "RPS2," citing the company's early collections and loss mitigation practices as primary reasons for the higher rating.
Fitch also said the upgrade is based on Centex's solid abilities to service, collect and liquidate subprime residential mortgage loans. Fitch also cited the financial strength of Centex's parent, Centex Corp., and the firm's experienced management team.
Centex Home Equity's servicing operation is located in Dallas. As of February, the company serviced a portfolio of 73,500 loans with a cumulative balance of $5.38 billion, an increase of 28% by dollar volume since the end of 2001. Subprime credit quality loans account for 96% of the portfolio.
Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.mortgageservicingnews.com