OREANDA-NEWS. Fitch Ratings has affirmed the U.S. residential servicer ratings for Carrington Mortgage Services, LLC (Carrington) with a Stable Outlook as follows:

--U.S. residential primary servicer rating for subprime product at 'RPS3;
--Special servicer rating at 'RSS3'.

The rating affirmation and Stable Outlook reflect Carrington's experienced management, significant portfolio growth, established internal controls and enhanced technology to support key business initiatives.

The ratings also take into consideration the financial condition of Carrington, a non-rated Fitch entity, as financial condition is a component of Fitch's servicer ratings.

Fitch believes that Carrington continues to maintain a capable servicing operation with the staff, procedures and controls, default management processes, and technology to manage its servicing portfolio. However, Carrington's portfolio increased significantly over the review, primarily from acquisitions of performing government loans. The portfolio increase pressured certain of the servicer's call center metrics. Management indicated to Fitch that growth in the upcoming year will be moderated. While Fitch believes management has the necessary plans regarding staffing, training, and oversight, Fitch will continue to monitor Carrington's evolving portfolio profile for any operational weaknesses.

Carrington operates its servicing platform from Anahemim, CA and Westfield, IN with a total of over 700 full-time equivalent (FTE) servicing employees as of Sept. 30, 2015. Carrington services over 305,000 loans totaling $39.2 billion, mostly government loans. The portfolio included approximately 76% government loans, 12% subprime loans, 12% other, and less than 1% second liens and manufactured housing 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.