FNFÂ Servicing saw is special servicer rating upgraded. Among the reasons cited for the improved rating were an increase in the use of short sales, a reduction in the amount of time it takes to complete a foreclosure and the addition of more employees. However, the servicer could do more to modify loans.
The servicer quality assessment for the Virginia Beach, Va.-based company was improved to SQ3 from SQ3- as a special servicer of residential loans.
The highest possible servicer quality rating is SQ1+, while the lowest rating available is SQ5-.
Moody’s Investors Service, which announced the upgrade, additionally confirmed FNF’s SQ3+ rating as a primary servicer of prime and Alt-A mortgages.
The ratings agency said its action were based on a review of servicing operations at FNF-subsidiary LoanCare Servicing.
LoanCare serviced 241,685 loans for $45 billion as of Dec. 31, “a two-fold increase in 2012,” according to Moody’s.
The upgrade was prompted by an increase in the level of short sales completed, an improvement in foreclosure timelines, and an expansion of the special servicing staff by 60 employees. FNF has reportedly designated employees to focus on liquidation and modification of loans in states with longer foreclosure timelines.
Self-service options have been enhanced through FNF’s interactive voice response unit.
“We view FNF Servicing’s collection abilities to be above average for prime and Alt-A loans,” Moody’s stated. “It exhibited solid collection roll rates especially in the later stages of delinquency relative to peers, while it experienced minor negative spikes in its call center metrics.”
Moody’s noted, however, that FNF lags its peers when it comes to modifying loans in the early stages of delinquency.
