Fitch Assigns Servicer Ratings to Loancare, LLC
--Primary servicer rating for prime product 'RPS2-'; Outlook Stable;
--Specialty sub-servicer rating assigned at 'RPS2-'; Outlook Stable.
The rating assignments and Stable Outlook are based on LoanCare's established servicing platform, the servicer's comprehensive and highly integrated servicing technology, effective internal control environment, and experienced senior management team. Additionally, the ratings take into consideration the servicer's strategic managed growth in expanding its servicing platform over the years. Additionally, the rating actions also reflect the financial strength of its ultimate parent Fidelity National Financial, Inc. (FNF), which acquired LoanCare in May 2009 and is rated 'BBB-' Outlook Stable by Fitch.
LoanCare operates its mortgage loan servicing business primarily from its Virginia Beach, VA and Jacksonville, FL locations. The latter became operational in July 2013 and focuses on customer service, escrow administration, and half of its call center operation, acting as a backup to its main office in VA.
The company was established in 1983 and over the past five years LoanCare has grown its portfolio to 560,959 loans totaling \$110 billion from 92,000 loans totaling \$13.1 billion with a corresponding increase in staff to 651 from 123. The portfolio is further broken down as follows: 517,219 agency loans totaling \$102 billion, 43,375 non-agency Prime RMBS loans totaling \$7.5 billion, and 365 other loans totaling \$35.2 million (includes subprime and ALT- A, and second liens).
The servicer maintains enhanced customer service and client information technology systems and processes, which include interactive voice response and web capabilities, a mobile application for payments and website tracking for insurance, mortgage payments and loss mitigation status.
LoanCare follows the direction of the risk management programs and policies of its direct parent ServiceLink NLS, LLC (ServiceLink), which is an operating subsidiary of FNF. The program is designed to provide sufficient oversight of LoanCare's operation by identifying material risk inherent in its mortgage servicing activities to analyze and manage responses to those risks, and to oversee risk mitigation activities and report material risks to senior management and the board of managers. Internal audit functions are performed by ServiceLink enterprise-wide, with results disseminated to the President of LoanCare and the board of managers.
Fitch will continue to monitor LoanCare's ability to maintain its strategic growth objectives operating as a non-bank servicer in a highly regulated environment.