Fitch Affirms BSI Financial's U.S. Residential Mortgage Servicer Ratings
OREANDA-NEWS. Fitch Ratings has affirmed the following U.S. residential mortgage servicer ratings of BSI Financial Services. (BSI):
--U.S. residential primary servicer rating for Prime product at 'RPS3-'; Outlook Stable;
--U.S. residential special servicer rating at 'RSS3-'; Outlook Stable.
The rating affirmations reflect BSI's mortgage servicing experience, leadership team, along with its adequate servicing technology. However, the ratings also reflect the company's developing control environment especially as the company undergoes its initial reviews under a formalized internal audit program.
In addition, the rating incorporates the financial condition of BSI, a non-publicly rated entity, as financial condition is a component of Fitch's servicer ratings.
Finally, the ratings reflect Fitch's overall concerns for the U.S. residential servicing industry, which include the ability to maintain high performance standards while addressing the rising cost of servicing and changes to industry practices, mandated by regulators and other parties.
Fitch believes that BSI has a capable servicing platform with the capacity and infrastructure for its current portfolio profile. However, Fitch continues to monitor the company as it strengthens and enhances certain areas of the platform to position itself for servicing non-agency RMBS rated transactions. These areas include investor reporting, customer service, collections, foreclosure, REO and internal audit. Fitch will continue to monitor the company's development of these areas as it pursues its servicing initiatives.
BSI has servicing sites in Irving, TX, Titusville, PA and Irvine, CA. The company has three additional specialized servicing branches located in Bethesda and Baltimore, MD and San Diego, CA that are dedicated to servicing portfolios for specific investors. BSI provides third party, high touch servicing of highly distressed mortgage loans on behalf of private investors, banks, credit unions, and mortgage bankers. The company employs 462 full time equivalents (FTEs) staff.
As of Sept. 30, 2015, BSI serviced over 43,000 residential mortgage loans totaling $7.7 billion. This included approximately 95% first lien mortgages comprising approximately 7,200 government-sponsored entities (GSE) product and approximately 34,000 non-agency mortgage loans. Additionally, 2,200 of the portfolio comprise second lien mortgages which are primarily of closed end loans.
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 Criteria for U.S.