Mortgage Daily Logo
mortgage news from industry experts

Upgrade to Select’s Servicer Ratings

A host of factors contributed to an improvement in Select Portfolio Servicing Inc.’s servicer ratings for subprime mortgages and second liens. The company saw its average loan size jump by more than a quarter over the past year.

Moody’s Investors Services reported today that it upgraded Select’s primary servicer and special servicer quality ratings for subprime mortgages to SQ2+ from SQ2.

In addition, Select’s primary servicer rating for second liens was raised to SQ2 from SQ2-.

Moody’s rates the best servicers at SQ1+, while the worst servicers are rated SQ5-.

An improvement in Select’s collections and loss mitigation loan level performance compared to its peers was the primary driver behind the ratings action.

“In particular, the performance metrics benefited from modification, short sale, and other workout options that Select Portfolio Servicing offers to its borrowers at all stages of delinquency,” Moody’s stated. “Since the prior review, Select Portfolio Servicing trained its collectors and loss mitigators to evaluate every delinquent and imminent default loan for HAMP, and ensures that each loan has been solicited for HAMP before it moves to foreclosure referral.”

Since Moody’s last rated the Credit Suisse Inc.’s subsidiary on Aug. 21, 2009, it has increased staff at its India outsource vendor by 50 percent. This allowed the Select to expand non-customer facing functions offshore.

Moody’s also cited a conversion to voice-over-IP and the implementation of a Web-based REO system.

Select’s servicing portfolio was 210,093 loans for $35.5 billion as of June 30. A year earlier, the portfolio stood at 222,320 loans for $29.7 billion. The shift in the portfolio has increased the average loan size to around $169,000 from around $133,600 a year earlier.

The Salt Lake City-based company employed 781 people as of June 30.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION