Fairbanks Capital, the Salt Lake City-based mortgage servicer that has come under fire for controversial collection practices, has finalized the restructuring of the company's financing.The company said the agreement extends financing for servicing advances and working capital through Sept. 30, 2004. However, Fitch Ratings has downgraded Fairbanks' ratings as a servicer of subprime and home equity loans both as a primary and special servicer. However, Fitch removed Fairbanks from Rating Watch Negative and placed it on "evolving" watch status. Fitch said the change, which follows an onsite review of Fairbanks' loan servicing centers, reflects the company's strengthened financial condition, but also reflects uncertainty with regard to the company's "pending settlement with the Federal Trade Commission and the Department of Housing and Urban Development."
Good News, Bad News for Fairbanks
Published June 18, 2003, 2:00 p.m. EDT
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