Fairbanks Capital is now the second servicer to receive an SQ1' rating in subprime mortgage primary and sub-servicing from Moody's Investors Service, which is the highest rating Moody's will give to a servicer.
Moody's has placed an SQ1' on C-Bass' Litton Loan Servicing as a servicer and sub-servicer in subprime mortgages.
"We don't anticipate very many others ending up [SQ1] in that category," said Diane Westerback, who runs the servicing group at Moody's.
Moody's announced in January that it intended to rate servicers (see ASR 1/8/01), and assigned its first rating (to Litton) in March. The agency will rate servicers in other categories including prime, second lien, high-loan-to-value, insured loans, manufactured housing, tax liens, and others. Litton is expected to receive a rating in another category within a week or so. The rating agency hopes to assign two or so servicer ratings each month going forward.
