We hear a lot about bad mortgage services these days. But that’s not the norm and the good services are actually growing. For example, Fay Servicing, a special servicer and mortgage originator, is growing its private-label securitization (PLS) business with strong deal flow and re-affirmed servicer ratings.
Since late 2013, Fay Servicing has been designated as the servicer on six PLS transactions backed by over $1.2 billion in mortgages including re-performing, non-performing and new issue prime jumbo products.
In November, Fitch Ratings affirmed Fay Servicing’s Residential Subprime and Special Servicer Ratings of RPS3 and RSS3, respectively, with an updgrade to “Outlook Positive.” Additionally, Standard & Poor’s reaffirmed Fay Servicing’s Residential Subprime and Residential Special Mortgage Loan Servicer ranking of average and “Outlook Stable.”
Fay Servicing’s PLS business includes both rated and unrated deals and it expects to see more seasoned product being rated in 2015, offering a deeper product range for institutional investors. Fay Servicing will apply the same focus on alignment of interests and investor transparency to the privale-label sector that it has historically provided to the whole loan sector.
“In today’s mortgage environment, there is a strong appreciation for a servicer that can optimize loan value for investors with a borrower-centric approach driven by higher cure rates and fewer foreclosures,” said Ed Fay, CEO of Fay Servicing. “It is exciting that investors and banks recognize that our unique relationship-based servicing platform provides a different kind of borrower experience, ultimately giving our clients an edge in both legacy and new origination private-label deals, where we expect to see meaningful growth in the years to come.”
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