S&P Eyes Fairbanks’ Servicer Rankings

Citing "increased regulatory scrutiny" of Fairbanks Capital Corp.'s servicing practices, Standard and Poor's Ratings Services has placed the company's residential subprime servicer and residential special servicer rankings on CreditWatch with negative implications.S&P cited a recent meeting between the company's management and Maryland regulators to address borrowers' concerns, as well as a request by U.S. Sen. Barbara Mikulski, D-Md., that the Department of Housing and Urban Development consider initiating a wider investigation. The Salt Lake City-based Fairbanks said S&P's action "underscores the challenging atmosphere in which the non-prime servicing industry, and Fairbanks as one of the largest non-prime servicers, operates." Fairbanks pointed to the fact that its Strong servicer rankings are the highest given by S&P, and it said Moody's and Fitch Ratings "have made similar assessments of Fairbanks’ performance." The company pledged "continued cooperation with regulators" and said it remains "committed to industry best practices." S&P can be found online at http://www.standardandpoors.com.