Servicer ratings improved for Central Mortgage Co.
Moody's Investors Service today said today it upgraded Central to an SQ3+ as a primary servicer of prime residential mortgages.
Moody's says its ratings range from SQ1 to SQ5, with these respectively signifying "strong" and "weak," and may further differentiated by a "+" or "-" sign.
While Central's loss mitigation, foreclosure time line management and servicing stability is just average, Moody's reported its collection abilities are above average. Also, Central improved its quality indicator program and management focus on collection performance.
But the Arkansas-based servicer completed foreclosure 25 days beyond the Freddie Mac Timeline Assuming No Delays on average, while approximately 61% of the loans experienced foreclosure delays beyond Central's control, the ratings agency noted.
Central, an indirect subsidiary of Arvest Bank Group Inc. that handles mortgage servicing rights acquired in the secondary market, had a $19 billion servicing portfolio as of March 31, 2006, primarily consisting of prime and Alt-A first-lien mortgages, Moody's reported.