A “unique” servicing structure was a factor in the upgrading of Green Tree Servicing LLC’s junior-lien servicer rating.
The St. Paul, Minn.-based firm’s second-lien residential servicer rating improved to SQ2 from SQ2-, Moody’s Investors Service reported.
Ratings range from a low of SQ5- to the best rating of SQ1+.
“The second lien rating is based on Green Tree’s strong collection and loss mitigation abilities,” Moody’s said in the statement. “The upgrade was driven mainly by solid collections and call center performance metrics.”
Moody’s highlighted how Green Tree centralizes early-stage delinquency, while accounts more than 30 days past due are handled through single point-of-contact account ownership from 27 regional offices and 4 servicing centers.
“We view Green Tree’s solid technology and individual account ownership structure as key drivers behind their positive results,” Moody’s added.
Green Tree’s second-lien servicer ratings were previously upgraded in January 2010.
It serviced $37.5 billion as of March 31. The servicing portfolio included $10.0 billion in second liens, $12.5 billion in subprime mortgages and $13.1 billion in manufactured housing loans.
Green Tree will be acquired by Walter Investment Management Corp. from an investor consortium led by Centerbridge Partners L.P., according to a March announcement. No management or operational changes are planned.
