Fitch Ratings said Friday it had assigned LoanCare Servicing Center, Inc. a residential subservicer rating for prime product at ‘RPS3+’. In addition, Fitch said it had affirmed LoanCare’s ‘RPS3’ residential primary servicer rating for prime product. Based in Virginia Beach, VA, LoanCare is a wholly owned subsidiary of LandAmerica, a nationally recognized real estate transactions company located in Richmond, VA. LoanCare has performed third party subservicing for various financial entities throughout the U.S. since 1991 and is a recognized subservicer with over 100 clients and an active interim servicing customer base. In the last year the company’s portfolio grew to almost $13.8 billion from $8.4 billion, representing a 64.3 percent increase over the prior year.
Since Fitch’s last visit, the agency noted that LoanCare has capitalized on synergies with LandAmerica, developing new product offerings such as unbundled services, backup servicing and servicing optional mortgage products. In February 2007, the company moved to a new 31,000 sq. ft. servicing facility to accommodate its current growth and to facilitate additional capacity. LoanCare’s management indicated that it expects net portfolio growth in 2007 not to exceed 20 percent due primarily to market shifts. Fitch also said it had noted higher than average turnover rates in the company’s escrow administration, customer service and default management areas. LoanCare has significantly increased its temporary staffing to supplement its workforce and expects to implement employee incentive programs in the second quarter of 2007 to improve hiring and retention rates. These concerns contributed to the “three” rating the company was assigned. For more information, visit http://www.fitchratings.com.
