Fitch Ratings has affirmed National City Bank's (NCB) U.S. residential servicer ratings for both prime and Alt-A products at RPS2+.
The rating actions reflect NCB's experienced management team, comprehensive controls and proficient loan administration practices, Fitch says.
In December 2008, NCB's parent, National City Corp., and affiliates were acquired by PNC Financial Services Group Inc. (PNC). Since Fitch's prior review, NCB discontinued its previous strategy of aligning servicing functions across mortgage and nonmortgage products. All mortgage servicing functions, including loan administration and default management ,are currently aligned under a single management structure.
In April 2009, NCB consolidated its collections and customer service departments to provide increased flexibility in managing call volume and workflow in an effort to address high incoming collections call hold time and abandonment rates, which averaged 151 seconds and 8.3%, respectively, during the review period. It appears the consolidated call center has allowed NCB to better balance its workload across its more than 300 agents, as the incoming call hold time and abandonment rate improved for the month of July to 74 seconds and 3.3%, respectively, the agency adds.
Also, in order to process the significant increase in loss mitigation cases, NCB hired additional permanent and temporary staff in its loss mitigation department and is leveraging two outsource service providers.
A participant in the federal government's Home Affordable Modification Program (HAMP), NCB also created an internal advocate team to provide a single point of contact for borrowers seeking HAMP modifications.
As of May 31, NCB, whose servicing operations are headquartered in Miamisburg, Ohio, administered a portfolio comprising approximately 1.1 million loans and totaling $177.9 billion. This total included over 62,000 non-agency prime loans totaling $27.2 billion, and over 65,500 Alt-A loans totaling $14.1 billion.
SOURCE: Fitch Ratings