Fitch Ratings has assigned the following U.S. residential mortgage servicer ratings to ResMAE Mortgage Inc. (ResMAE): residential primary servicer rating for subprime product assigned at RPS3-, and residential special servicer rating assigned at RSS3-.
The primary and special servicer ratings are based on ResMAE's experienced management and robust servicing technology, competent loan administration and default management functions, and established processes for managing and liquidating nonperforming loans and real estate owned assets, Fitch says.
In June 2007, ResMAE emerged from bankruptcy and was acquired by an affiliate of Citadel Investment Group LLC. ResMAE has been located in Overland Park, Kan., since the acquisition in December 2007 of the residential mortgage servicing operations of NovaStar Mortgage Inc., including NovaStar's proprietary technology and key management personnel.
ResMAE's servicing management averages 16 years of industry experience. As of Dec. 31, 2008, ResMAE's servicing portfolio totaled approximately 4,100 subprime loans for approximately $960 million.
Fitch has reviewed the company's servicing operations and believes that ResMAE has the infrastructure and technology to support its servicing portfolio. However, Fitch expresses concern that no new loans have been added to ResMAE's servicing platform since the initial boarding of the legacy ResMAE loans in January 2008. Fitch will continue to monitor ResMAE's ability to maintain performance as it pursues its servicing initiatives under its new ownership in a high delinquency environment.
SOURCE: Fitch Ratings