Fitch Ratings has affirmed and removed from Rating Watch Evolving the following U.S. residential mortgage servicer ratings for Countrywide Home Loans, Inc. (CHL):
--Residential primary servicer rating for prime product at 'RPS1';
--Residential primary servicer rating for Alt-A product at 'RPS1-';
--Residential primary servicer rating for Subprime product at 'RPS1-';
--Residential primary servicer rating for HELOC product at 'RPS1-';
--Residential special servicer rating at 'RSS1-';
--Residential master servicer rating at 'RMS2+'.
The primary and special servicer rating actions are based on CHL's experienced management team, sophisticated servicing technology, vertical integration strategy, and comprehensive risk management practices. The master servicer rating is based on CHL's integrated master servicing technology and ability to oversee the servicing activities of its primary and special servicers. In addition, the servicer ratings incorporate the strong financial condition of CHL's parent, Bank of America N.A. (BofA; rated 'AA-'; Outlook Stable by Fitch). In July 2008, BofA completed its acquisition of CHL.
CHL has servicing facilities located in Simi Valley and Lancaster, CA; Plano, Fort Worth, and Richardson, TX; Tempe, AZ; as well as several offshore facilities. CHL continues to use its network of vertically integrated residential mortgage-related businesses to perform traditional vendor services and to invest in servicing technology, most of which the company has developed in-house. Since Fitch's prior review, CHL opened an additional site in Richardson, TX to expand the call center for the HOPE Team. As of June 30, 2008, CHL's servicing portfolio consisted of over 8.99 million loans totaling over $1.49 trillion.
Fitch's review of CHL's servicing operations confirmed that the company has the appropriate staff, default procedures, and controls in place to manage its initiatives while maintaining performance. Fitch will monitor CHL's ability to maintain servicing performance as it continues to integrate its operations with BofA in a high delinquency environment.
For more information on the impact of financial condition on Fitch's servicer ratings, please see Fitch's report 'Impact of Financial Condition on U.S. Residential Mortgage Servicer Ratings', dated March 26, 2007, which is available on the Fitch Ratings web site at www.fitchratings.com. 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 www.fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. 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.