It's a tough time to be a servicer, no doubt, as some of the biggest names -- i.e., Fairbanks Capital Corp. -- have been shaken with regulatory, capacity and then rating issues. That said, Fitch Ratings is affirming its 'RPS1' view on HomEq Servicing Corp.'s subprime and Alt-A primary servicing ratings, and its 'RSSI1' on its special servicer ratings.
HomEq is a subsidiary of Wachovia Corp. As such, the company is primary servicer on over $16.3 billion in loans, many of which were originated by former First Union subsidiary The Money Store.
In a release, Fitch said it will continue to monitor HomEq's growth process. Rapid growth in the late 1990s, followed by a tumultuous credit/default environment, has taken its toll business.