The mortgage servicer that formerly operated as part of CIT Group Inc. saw its subprime servicer rating raised. The company’s technology, balance sheet and management were cited in the upgrade.
Fitch Ratings said today that it raised the rating of Vericrest Financial Inc. to RPS3+ from RPS3.
Subprime servicer ratings range from the best, RPS1+, to the worst, RPS5-.
“The rating action is based on Vericrest’s experienced management team, enhanced control environment, and focused loan administration and default management practices,” Fitch explained. “The rating action also reflects the financial condition of Vericrest, a non-publicly rated entity, as financial condition is an important component of Fitch servicer ratings.”
The ratings agency went on to compliment the Oklahoma City-based company’s implementation of an internal audit structure and various technology improvements — moves it says improve the servicing platform.
Vericrest was acquired by Lone Star Fund VI from CIT in 2009. Lone Star was the parent of Accredited Home Lenders Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code in May 2009.
Lone Star is utilizing Vericrest as a captive servicer for its U.S. residential mortgage acquisitions, according to Fitch.
As of March 31, Vericrest serviced 49,583 mortgages for more than $6.4 billion. The servicing portfolio has declined from 59,397 loans form more than $7.8 billion as of June 30, 2000.
“The company continues to maintain a capable servicing operation with the appropriate staff, procedures, controls and technology to manage its current servicing portfolio,” Fitch said.
