Fitch Upgrades BNY Mellon Servicer Rating

Ratings has upgraded The Bank of New York Mellon's (BNY Mellon) master servicer rating from RMS1- to RMS1. This rating action reflects BNY Mellon's ‘strong oversight, experienced tenured management and monitoring of its primary servicers, along with its continued investment in enhancing its technology and increasing the use of automation,’ Fitch says. The agency reports that BNY Mellon continues to maintain and increase efforts with regard to default monitoring for primary servicers. The rating action also reflects the financial strength of its parent company, The Bank of New York Mellon, which is rated AA-/F1' with a Stable Outlook. The BNY Mellon master servicing division oversees the primary servicing functions for public and private mortgage-backed securities. As master servicer, the company oversees servicer activities, reconciles loan calculations, receives cash from servicers, and remits and reports to the security administrator and/or investor, monitors some default loan activities and also performs reviews on all its servicers annually. As of March 31, BNY Mellon was master servicing more than 94,697 loans totaling $19 billion. BNY Mellon's servicing portfolio has $3.8 billion of subprime, $6.7 billion of prime, $4.4 billion of Alt-A, $103.3 million in reverse, and $3.3 billion in conventional conforming and FHA/VA product. BNY Mellon currently manages 52 primary servicers and has 153 investors. Over the past year, BNY Mellon has further enhanced its servicing system, SBO2000, with the addition of the reverse mortgage product module, loan modification module and automation of more functionality, Fitch says. Additionally, BNY Mellon has more enhancements and modules in various stages of testing and implementation and is working on expanding its product offerings. SOURCE: Fitch

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