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:
-- 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
-- Experienced management and staff;
-- Multiple auditing mechanisms;
-- Good systems technology;
-- Servicing metrics are competitive; and
-- Good oversight and controls throughout the default areas.
-- 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
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
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.
-- 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
-- Select Servicer List
Servicer Analyst: Steven L Frie, New York (1) 212-438-2458;
Secondary Contact: Alicia Clarke, New York (1) 212-438-8805;
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