Fitch Upgrades Green Tree’s Residential Special Servicer Rating
Posted Under: Mortgage Broker
Fitch Upgrades Green Tree’s Resi Special Servicer Rating
Fitch Ratings has taken rating actions on Green Tree’s U.S. residential servicer rating(s) as follows:
–Primary servicer rating for subprime product affirmed at ‘RPS2-’;
–Primary servicer rating for HLTV product affirmed at ‘RPS2-’;
–Primary-Specialty servicer rating for Second Lien product upgraded to ‘RPS2′ from ‘RPS2-’;
–Primary servicer rating for HELOC product assigned at ‘RPS2′;
–Special servicer rating upgraded to ‘RSS2′ from ‘RSS2-’;
The rating actions are based on Green Tree’s experienced management and staff, effective default management, strong internal controls and robust servicing technology. In addition, the rating actions reflect Green Tree’s focused training and leadership programs and expanding product services.
Fitch does not publicly rate the credit and financial strength of Green Tree. However, Fitch’s financial institutions group reviewed Green Tree’s financial statements to provide an internal assessment, as a company’s financial condition is an important component of Fitch’s servicer rating analysis.
As of June 30, 2009, Green Tree’s servicing portfolio totaled 647,261 loans for $24.2 billion, including 29,028 subprime loans for $11.9 billion; 12,112 HLTV loans for $306,5 million; 5,895 HELOC loans for $288.6 million, 90,372 closed-end second loans for $3.8 billion; and 506,570 manufactured housing loans for $15.2 billion.
On Oct. 17, 2007, Green Tree servicing was acquired by a consortium lead by Centerbridge Partners, L.P. Green Tree’s servicing operations are headquartered in Tempe, AZ with three other servicing centers located in Saint Paul, MN; Rapid City, SD; and Fort Worth, TX. Green Tree also has one origination (refinance) center in Tustin, CA and 31 regional offices throughout the U.S. Green Tree’s senior management is well-seasoned, averaging over 25 years of industry experience and 10 years of company tenure.
Green Tree continues to grow its residential servicing business by expanding its back-up servicing, adding products such as HELOC and deficiency collections, adding new strategic partners and adding a new channel of growth as Trustee. In the last 18 months Green Tree has added $14.2 billion in servicing to its portfolio. Green Tree is currently servicing deficiency collections for 240 securitizations.
Fitch’s review confirmed that Green Tree has the requisite management, training, technology and controls necessary to manage its primary subprime, HLTV, HELOC and closed-end second lien products as well as special servicing. However, Fitch will continue to monitor Green Tree’s residential servicing platform and performance in the current high delinquency 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’.
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.
Contacts
Fitch Ratings, New York
Margaret Sweeney, +1-212-908-0712
Diane Pendley, +1-212-908-0777
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com
