Fitch – the ratings company – has affirmed Saxon Mortgage Services Inc. ratings. Can you believe this? It certainly goes against common logic and what is reported in the news:
Fitch Ratings has affirmed Saxon Mortgage Services, Inc.’s (SMSI) U.S. residential servicer ratings as follows:
–Residential primary servicer rating for subprime product at ‘RPS2+’;
–Residential special servicer rating at ‘RSS2+’.
The recommended rating actions reflect SMSI’s strong servicing management team, solid control environment, and focused default management practices. The special servicer rating is based on SMSI’s established processes for managing and liquidating non-performing loans and real estate owned (REO) assets. The ratings also reflect the financial condition of SMSI’s parent, Morgan Stanley, rated ‘A’ with a Stable Rating Outlook by Fitch.
Where is that strong management team? “Focused default practices” must relate to the same package being faxed – and lost – over and over again.
Just last week one news article claimed Saxon’s difficulties and overload pertained to NovaStar accounts (about 80,000 of them) assumed by Saxon.
This is another case where what you read in the national news is not what real people see at their level.
Fitch gets paid to rate Saxon.