EMC Gets Top Servicer Ratings
Fitch Ratings has affirmed its top ratings on EMC Mortgage Corp.'s primary and special servicer functions.
EMC is rated "RPS1" as a primary servicer of subprime and alt-A mortgage loans and receives the "RSS1" rating as a special servicer.
Fitch cited EMC's seasoned, tenured management; strong internal procedures and controls; upgraded technology; and robust leadership and training programs as reasons for the high ratings.
The special servicer rating is based on the company's ability to effectively manage and liquidate nonperforming residential mortgage loans and real estate owned assets. In addition, Fitch said the ratings reflect the financial strength of EMC's parent, the Bear Stearns Cos. Bear Stearns receives an "A+/F1+" rating from Fitch.
EMC is headquartered in Irving, Texas, and serviced more than 259,000 loans totaling approximately $30.4 billion as of Feb. 28. Of that total, nearly $15.5 billion were subprime loans and $6.5 billion were alt-A loans. This was an increase of approximately 44% in loan volume and 95% in dollar volume since February of 2004.
Over the last year, EMC has enhanced its customer service practices, upgraded its technology platform, reinforced its already robust leadership development programs, and continued to strengthen its internal control environment, Fitch Ratings said in a news release.
In addition, the rating agency noted that in order to accommodate future growth, EMC has instituted process improvements throughout its servicing platform and expanded in-house training programs to facilitate employee learning and development.
Fitch said it believes EMC has the "appropriate staff, technology, default procedures and controls in place to manage its planned growth initiatives."
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