|
Business News
|
Sponsored By:
|
|
|
|
06/19/09 - Fitch Upgrades BNY Mellon Servicer Rating
|
ALBANY, N.Y. - Fitch Ratings has upgraded The Bank of New York Mellon's (BNY Mellon) U.S. residential servicer rating as follows: Master servicer rating to 'RMS1' from '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. 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 The Bank of New York Mellon, rated 'AA-/F1+' with a Stable Outlook by Fitch.
The BNY Mellon master servicing division oversees the primary servicing functions for public and private mortgage-backed securities (MBS). 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.
BNY Mellon master servicing is headquartered in New Albany, Ohio. Master servicing is part of BNY Mellon's Global Structured Credit Group which includes the related businesses of ABS, MBS, CDO, CMBS, Document Custody, Loan Administration and Servicing, and Asset Solutions. As of March 31, 2009, 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, reverse $103.3 million, and conventional conforming and FHA/VA product $3.3 billion. 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. Additionally, BNY Mellon has more enhancements and modules in various stages of testing and implementation and is working on expanding its product offerings.
Fitch believes BNY Mellon's master servicing platform has the capacity and infrastructure to maintain and increase its master servicing, while pursuing its growth initiatives. Fitch will monitor BNY Mellon's ability to maintain oversight of its primary servicers in a high default environment.
Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'Rating U.S. Residential Mortgage Servicers', dated Nov. 29, 2006, which is available on the Fitch Ratings web site at www.fitchratings.com.
About Fitch's rating: Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|