--U.S. Residential primary servicer rating for Alt-A product at 'RPS1-'; Outlook Stable;
--U.S. Residential primary servicer rating for Subprime product at 'RPS1-'; Outlook Stable;
--U.S. Residential primary specialty servicer rating for Closed-End Second Liens product at 'RPS1-'; Outlook Stable;
--U.S. Residential special servicer rating at 'RSS1-'; Outlook Stable.
SPS has been servicing residential loans for more than 25 years and RMBS transactions for 14 years. SPS is wholly owned by Credit Suisse Group, AG. The servicer does not originate or purchase loans but provides servicing for third parties while acting as a key component of Credit Suisse's residential mortgage conduit. The servicer also acquires special servicing and seasoned portfolios from underperforming servicers.
The servicer rating affirmations and Stable Rating Outlook reflect SPS' strong loss mitigation and effective pre-foreclosure sale resolutions. The ratings also take into consideration SPS' process for identifying and completing targeted solutions based on the customers' ability and willingness to pay. SPS evidences a strong compliance structure, including its enhanced internal control processes and procedures. The servicer continues to utilize its proprietary loss mitigation systems in maintaining and improving performance in most products.
SPS has been acquiring more severely delinquent loans, with some loans having limited or no customer contact from the previous servicers. However, the servicer experienced material improvements in abandonment rates and average hold times for both customer service and collection accounts. SPS explained that the improvements were due to its closer monitoring and increased staffing to maintain metrics above performance levels.
In addition, SPS indicated that it increased its existing controls in the loan boarding and default management areas to reconcile and confirm that all loss mitigation loans in transition are accurate prior to boarding. Fitch believes that this process will reduce delays in reconciling loss mitigation cases that occur during the transfer of servicing.
SPS continues to make enhancements to its regulatory environment by realigning the client and contractual compliance teams under its internal audit group and added experienced auditors to meet its increased monthly process and control reviews. The servicer maintains highly developed internal and external audit control processes with oversight by its executive management team and its parent. The servicer indicated that it is under no regulatory oversight and was in full compliance with its 2013 Reg. AB Requirements.
The servicer has its main servicing location in
Fitch will continue to monitor SPS while it manages growth and rising costs in a highly regulated environment
Additional information is available at 'www.fitchratings.com'.
--'Global Rating Criteria for Structured Finance Servicers',
--'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria', dated
Rating Criteria for Structured Finance Servicers
U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria -- Effective
Source: Fitch Ratings
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