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Fitch Assigns LoanCare Servicing 'RPS3+' Resi Subservicer Rating

Fri, 04/06/2007 - 14:39 — keith

NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns LoanCare Servicing Center, Inc. (LoanCare) a residential subservicer rating for prime product at 'RPS3+'. In addition, Fitch affirms LoanCare's 'RPS3' residential primary servicer rating for prime product. The subservicer rating is based on the company's client branding technology, interim servicing, and loan boarding and new loan set-up expertise. Both the subservicer and primary servicer ratings reflect the company's effective loan administration procedures and established formal training programs as well as the financial strength of LoanCare's parent, LandAmerica Financial Group (LandAmerica), which is rated 'BBB', with a Stable Outlook by Fitch.

Based in Virginia Beach, VA, LoanCare is a wholly owned subsidiary of LandAmerica, a nationally recognized real estate transactions company located in Richmond, VA. LoanCare has performed third party subservicing for various financial entities throughout the U.S. since 1991 and is a recognized subservicer with over 100 clients and an active interim servicing customer base. In the last year the company's portfolio grew to almost $13.8 billion from $8.4 billion, representing a 64.3% increase over the prior year.

Since Fitch's last visit, LoanCare has capitalized on synergies with LandAmerica, developing new product offerings such as unbundled services, backup servicing and servicing optional mortgage products. In February 2007, the company moved to a new 31,000 sq. ft. servicing facility to accommodate its current growth and to facilitate additional capacity.

LoanCare's management indicated that it expects net portfolio growth in 2007 not to exceed 20% due primarily to market shifts. The company continues with its long-term strategy of 'building for growth' by upgrading systems, staffing and training. The company has added several management positions including a senior loan servicing manager. However, Fitch noted higher than average turnover rates in the company's escrow administration, customer service and default management areas. LoanCare has significantly increased its temporary staffing to supplement its workforce and expects to implement employee incentive programs in the second quarter of 2007 to improve hiring and retention rates. Fitch believes that LoanCare has the infrastructure and technology to support its current portfolio. Fitch will continue to monitor LoanCare's progress in effectively managing its growth and implementing incentive programs designed to reduce its turnover and increase retention.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'Rating U.S. Residential Mortgage Servicers,' dated Nov. 29, 2006, which is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts

Fitch Ratings, New York
Karen Eissner, 917-539-9529
Mary Kelsch, 212-908-0563
or
Media Relations:
Sandro Scenga, 212-908-0278

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Keith Gregory is the administrator for American Mortgage News. At this stage, most content posted here is in the form of a press release. As such, there is no implied warrently over the contents of an article, or any statement or endorsement of any kind whatsoever.