Fitch: No Change Expected in Fairbanks Ratings

Fitch Ratings has announced that it "does not currently expect" to change its servicer ratings of Fairbanks Capital Corp. as a result of federal regulatory reviews of Fairbanks' subprime servicing practices or potential liability from existing lawsuits.Fitch said many lawsuits have been filed against Fairbanks alleging predatory and deceptive business practices, which the rating agency said it takes very seriously. "However, Fairbanks has been the specific target of groups who have formed a combined effort to bring their issues to the attention of the media, regulators, and the rating agencies," Fitch said. The reviews cited by Fitch have been announced by the Department of Housing and Urban Development and the Federal Trade Commission. Fairbanks' residential primary servicer ratings by Fitch are RPS1 for subprime loans and RPS1-minus for alternative-A and home equity loans, and its residential special servicer rating is RSS1, the rating agency said. "If at any time Fitch determines that Fairbanks has not fully met the requirements of a servicer at its current rating level, or if there is any legal or regulatory finding that Fairbanks has engaged in practices that violate federal or state laws, Fitch will take immediate and definitive action with regard to their servicer rating," Fitch said.