11/13/13 14:24:00L Press Release: SP Assigns AVERA

 11/13/13 14:24:00L Press Release: S&P Assigns AVERAGE Rankings To Rushmore Loan Management Svcs 
  
 The following is a press release from Standard & Poor's: 
 
 
 
OVERVIEW 
 
 
 
     -- We assigned AVERAGE rankings to Rushmore as a residential special 
 
servicer and residential primary servicer. 
 
     -- The servicing platform has an established history of servicing 
 
accounts through prior ownership(s). 
 
     -- Rushmore uses much proprietary technology along with a vendor system. 
 
     -- The company plans to board newly originated loans in 2014. 
 
 
 
NEW YORK (Standard & Poor's) Nov. 13, 2013--Standard & Poor's Ratings Services 
 
today assigned AVERAGE rankings to Rushmore Loan Management Services LLC as a 
 
residential special servicer and residential primary servicer. 
 
 
 
Major Ranking Factors and Key Changes 
 
Strengths: 
 
     -- Experienced management and staff; 
 
     -- Multiple auditing mechanisms; 
 
     -- Good systems technology; 
 
     -- Servicing metrics are competitive; and 
 
     -- Good oversight and controls throughout the default areas. 
 
Weakness: 
 
     -- Compliance and Quality Control exam results reflected findings in 
 
certain areas, which have since been remediated. 
 
 
 
This is Standard & Poor's Ratings Services' initial review of Rushmore Loan 
 
Management Company LLC. 
 
 
 
Opinion:  Standard & Poor's Ratings Services' residential special servicer and 
 
primary servicer rankings for Rushmore Loan Management Services LLC, a wholly 
 
owned subsidiary of Roosevelt Management Company LLC. are AVERAGE. The outlook 
 
is stable. 
 
 
 
Although the current ownership only purchased the operation approximately 
 
three years ago, the company has an established history of servicing 
 
distressed and performing loans through its predecessor entity.  The current 
 
management retained many of the staff upon acquisition, and subsequently hired 
 
senior/middle managers with extensive servicing expertise.  This, in our view, 
 
allowed it to sustain and improve upon the infrastructure so Rushmore could 
 
continue to satisfactorily service the existing portfolio while also acquiring 
 
new loans. It has a good training program and its policies and procedures were 
 
recently redesigned to reflect a more logical sequencing format. Controls are 
 
well-designed, as evidenced by various levels of examinations performed by 
 
internal audit, quality control, and compliance personnel. The robust 
 
technology environment relies mostly on several proprietary applications which 
 
can be quickly modified as needed based on regulatory or client requests. 
 
 
 
Performance metrics available from Standard & Poor's Servicer Evaluation 
 
Analytical Methodology (SEAM(r)) for January to June 2013 indicate that the 
 
company is an effective performer relative to similarly ranked servicers. Call 
 
center metrics in customer service, collections, and loss mitigation reflected 
 
fine results. A recently established vendor management group, along with a 
 
separate process for approving foreclosure/bankruptcy attorneys, helps the 
 
company in managing its vendors. As an offsetting factor, there were audit 
 
findings in some areas, but management indicated they have initiated 
 
corrective action. 
 
 
 
Outlook 
 
The outlook is stable.  The company has not yet acquired a portfolio of 
 
performing accounts or serviced newly originated prime loans, but has policies 
 
and procedures in place to address investor guidelines (e.g., FNMA/FHLMC/GNMA) 
 
as it eventually plans to procure (mainly through organic growth) such 
 
accounts within the next 12 months. Additionally, management and staff are 
 
familiar with servicing these loan types. The company similarly plans to 
 
increase its special serviced portfolio through new client relationships. We 
 
believe Rushmore will remain an effective residential special servicer in the 
 
marketplace and be a competent residential mortgage servicer in the future. 
 
 
 
RELATED CRITERIA 
 
     -- Revised Criteria For Including RMBS, CMBS, And ABS Servicers On 
 
Standard & Poor's Select Servicer List, April 16, 2009 
 
     -- Servicer Evaluation Ranking Criteria: U.S., Sept. 21, 2004 
 
 
 
RELATED RESEARCH 
 
     -- Select Servicer List 
 
 
 
 
 
Servicer Analyst: Steven L Frie, New York (1) 212-438-2458; 
 
                   steven.frie@standardandpoors.com   
 
Secondary Contact: Alicia Clarke, New York (1) 212-438-8805; 
 
                    alicia.clarke@standardandpoors.com   
 
 
 
 
 
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   (END) Dow Jones Newswires 
 
  11-13-13 1624ET