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Subprime Servicer Upgraded

The company formerly known as Fairbanks Capital Corp. saw its subprime servicer rating upgraded.

Moody’s Investors Service announced today the upgrade of Select Portfolio Servicing Inc.’s subprime servicer ratings.

The Salt Lake City-based company’s primary subprime servicer rating was boosted to SQ2 from SQ2-, according to the ratings agency. Its subprime special servicer rating was also upgraded to SQ2 from SQ2-.

The highest possible rating at Moody’s is SQ1+, while the lowest rating is SQ5-.

“Select Portfolio Servicing improved its current roll worse metric year-over-year versus its peers,” Moody’s explained in decision to take the action. “Additionally, Select Portfolio Servicing continues to drive process improvements in collections by empowering collectors to offer a wider range of loss mitigation options to the borrower. Additionally, the subprime timeline management assessment also was raised to strong from above average, reflecting an improvement in foreclosure and REO timelines despite larger volumes.”

The upgrade reflected above-average collection abilities and loss mitigation results as well as strong timeline management and above-average servicing ability. It also was impacted by the implementation of workforce management software and increased modification volume.

Select operated as Fairbanks Capital before being acquired by Credit Suisse First Boston from PMI Group Inc. in 2005.

In addition to its third-party servicing, Select services mortgages for Credit Suisse.

Select’s servicing portfolio stood at 222,320 loans for $29.7 billion as of June 30, 2009, up from 219,915 loans for $27.0 billion a year earlier.

Headcount at the end of June was 865 employees.

The last time Moody’s took action on Select’s rating was in November 2007, when it affirmed the SQ2- rating.

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