Moody's Affirms HomEq's Top Rating
Moody's Investors Service has reaffirmed the servicer quality rating of SQ1, the agency's highest rating, for HomeEq Servicing Corp.
Moody's said the rating reflects HomEq's strong collection and loss mitigation abilities, above-average foreclosure and REO timeline management, and strong servicer stability.
HomEq serviced $43 billion of subprime home loans at the end of 2004. The majority of the company's portfolio is comprised of loans acquired through third-party servicing relationships.
A portion of the loans serviced by HomEq were originated by The Money Store, and Moody's said a significant portion of this portfolio is "below average in terms of credit quality."
HomEq's strategy is to continue its third-party acquisitions of purchased mortgage servicing rights as well as providing interim servicing and subservicing.
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