Fitch Upgrades Green Tree’s Special Servicer Rating

Fitch Ratings has taken rating actions on Green Tree's U.S. residential servicer ratings.

The company's primary servicer ratings for subprime and HLTV products were affirmed at RPS2-; its primary-specialty servicer rating for second-lien product was upgraded to RPS2 from RPS2-; its primary servicer rating for home equity line of credit (HELOC) product was assigned at RPS2; and its special servicer rating upgraded to RSS2 from RSS2-.

The rating actions are based on Green Tree's experienced management and staff, effective default management, strong internal controls and robust servicing technology, Fitch says. In addition, the rating actions reflect Green Tree's focused training and leadership programs and expanding product services.

As of June 30, Green Tree's servicing portfolio totaled 647,261 loans for $24.2 billion, including 29,028 subprime loans for $11.9 billion; 12,112 HLTV loans for $306.5 million; 5,895 HELOC loans for $288.6 million; 90,372 closed-end second loans for $3.8 billion; and 506,570 manufactured housing loans for $15.2 billion.

On Oct. 17, 2007, Green Tree servicing was acquired by a consortium led by Centerbridge Partners LP. Green Tree's servicing operations are headquartered in Tempe, Ariz., with three other servicing centers located in St. Paul, Minn.; Rapid City, S.D.; and Fort Worth, Texas.

Green Tree also has one origination (refinance) center in Tustin, Calif., and 31 regional offices throughout the U.S. Green Tree's senior management is well-seasoned, averaging over 25 years of industry experience and 10 years of company tenure.

Green Tree continues to grow its residential servicing business by expanding its backup servicing, adding products such as HELOC and deficiency collections, adding new strategic partners and adding a new channel of growth as trustee. In the last 18 months, Green Tree has added $14.2 billion in servicing to its portfolio. Green Tree is currently servicing deficiency collections for 240 securitizations.

SOURCE: Fitch Ratings


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