2008-11-21 22:11:05 -
Fitch Ratings has taken the following rating actions on Litton Loan Servicing, LP's (Litton) U. S. residential servicer ratings:
--Primary servicer rating for Alt-A product assigned at 'RPS1';
--Primary servicer rating for Subprime product affirmed at 'RPS1' ;
--Primary servicer rating for High Loan-to-Value (HLTV) product affirmed at 'RPS1';
--Primary specialty servicer
rating for Manufactured Housing (MH) affirmed at 'RPS2';
--Special servicer rating affirmed at 'RSS1'.
The primary servicer rating actions reflect Litton's experienced stable management team, strong default management expertise and innovative, integrated technology and systems. Litton continues to remain a strong primary servicer of subprime, high loan to value (HLTV) and manufactured housing (MH) servicing. Although Fitch has not rated Litton for the Alt-A product in the past, the servicer has serviced Alt-A product effectively for many years. The special servicer rating reflects Litton's ability to liquidate nonperforming assets utilizing its robust default management and technology expertise. The MH rating is also based on Litton's ability to integrate MH loans into the servicing system while effectively managing problematic MH assets to conclusion.
The ratings also reflect the financial strength of Litton's parent, Goldman Sachs Group Inc. rated 'AA-/F1+' with a Stable Outlook by Fitch.
Litton has servicing sites located in Houston and Dallas, TX and Atlanta, GA.
As of June 30, 2008, Litton's servicing portfolio consisted of 363,118 residential mortgage loans totaling more than $56.5 billion. Litton primary services $53.7 billion consisting of 345,951 loans and special services $2.7 billion consisting of 17,167 loans. The portfolio is broken down by product as follows: Alt-A 10,375 loans totaling $1.7 billion; Subprime 257,179 loans totaling $48.2 billion; HLTV 65,945 loans totaling $2.9 billion; MH 6,247 loans totaling $496 million; HUD Reperforming and Assignment loans 930 loans totaling $41 million.
Over the past year, Litton has integrated with its Houston and Atlanta servicing operations the Avelo Mortgage, L.L.C.'s Dallas servicing platform and portfolio as well as the assets and servicing rights acquired from Popular Financial Holdings. Litton services for residential mortgage backed security RMBS securitizations, its owned portfolio, and third parties. Litton has been servicing residential loans for 13 years, HLTV for 12 yrs, Alt-A for 12 years, Special for 8 years and MH for 9 years. Litton's MH portfolio continues to run off.
Fitch believes that Litton will remain a strong servicer of subprime, Alt-A, HLTV and MH products as well as an efficient special servicer. However, Fitch will continue to monitor Litton's ability to manage its servicing metrics with the recent acquisitions and in a high delinquency environment in a challenging market.
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 U.S. Residential Mortgage Servicers', dated Nov. 29, 2006, which is available on the Fitch Ratings web site at
cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ...
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site,
cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ... Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Margaret Sweeney, 212-908-0712
Mary Kelsch, 212-908-0563
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: mailto:sandro.scenga@fitchratings.com
