Fitch Ratings takes the following rating action on the U.S. residential primary servicer ratings for Nationstar Mortgage LLC (Nationstar):
--U.S. residential primary servicer rating for subprime product updated at 'RPS2-'; removed from Rating Watch Evolving.
Fitch's rating actions are based on Nationstar's stabilizing and improved financial profile. Further, as of Fitch's last operational review of Nationstar in 4Q'09, Fitch confirmed that Nationstar has maintained or improved its operational standards while addressing today's high delinquency environment. A full annual operational and financial review is scheduled to take place in 3Q'10. Finally, the ratings were determined in accordance with Fitch's criteria 'Rating U.S. Residential Mortgage Servicers' and 'Global Rating Criteria for Structured Finance Servicers'.
Located in a suburb of Dallas, Texas, Nationstar has been operating since 1997, and was sold to the Fortress Investment Group (NYSE: FIG) family of companies in 2006. As of May 31, 2010, Nationstar's total servicing portfolio consisted of a $33.1 billion unpaid principal balance (UPB) and approximately 226,000 loans. FNMA loans comprise approximately 70% of the portfolio, with a $22.9 UPB and approximately 153,000 loans.
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 and 'Global Rating Criteria for Structured Finance Servicers' dated Sept. 30, 2009, which are available on the Fitch Ratings website at www.fitchratings.com.
Additional information is available at www.fitchratings.com.
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Diane
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