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SPS Names New Chief Executive, Starts Bidding on Business

Select Portfolio Servicing Inc. here has promoted its current president Matt Hollingsworth to be chief executive, replacing James Ozanne, who will remain chairman of the subprime servicing company formerly known as Fairbanks Capital Corp.

Mr. Ozanne took over the management of Fairbanks in 2003 to clean up the company in the wake of investigations regarding its servicing practices.

Mr. Hollingsworth joined Fairbanks in late 2002. He previously was in charge of U.S. branch operations for Associates First Capital Corp., a subprime lender that was acquired by Citigroup in 2000.

"Matt brings more than 18 years of mortgage industry and leadership experience to SPS," Mr. Ozanne said.

Separately, Financial Security Assurance Inc. said that Mr. Ozanne is rejoining its board of directors. FSA has a minority investment in SPS.

The Salt Lake City servicing company changed its name to Select Portfolio Servicing July 1.

"My goal is to provide the highest quality service to our customers while building a profitable company," Mr. Hollingsworth said.

SPS is profitable and it has turned a profit every month this year, he said. "However, we are not yet reaching the level of return we would like, although I believe, in time, we will meet those goals."

When Fairbanks agreed to a $40 million settlement with the Federal Trade Commission in November 2003, Mr. Ozanne predicted that 2004 would be a break-even year, but the servicing company would be profitable again by 2005.

Meanwhile, SPS is trying to stem the decline in its servicing portfolio. The portfolio has dropped from $51.5 billion in the second quarter of 2003 to $26.6 billion as of June 30. The company lost $4.7 billion in servicing during second quarter.

Mr. Hollingsworth said SPS is generating new business. "We were part of a new securitization just last month. We are actively in the marketplace bidding on new business [securitized pools], some of which we expect to come through in the fourth quarter this year."

He also noted that SPS' real estate-owned and broker price opinion business are doing well and showing strong growth.

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