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 No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. 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(END) Dow Jones Newswires 11-13-13 1624ET
