Moody's Investors Service has downgraded the servicer quality ratings of SN Servicing Corp. to 'SQ3-' from 'SQ3+' as a primary servicer of subprime loans and 'SQ3' from 'SQ2-' as a special servicer.
The rating agency's ratings are based on above average collection abilities and loss mitigation results, average foreclosure and REO timeline management and below average servicing stability. The downgrade was based mainly on the change in the servicing stability assessment from average to below average.
SN, which is is based in Eureka, California, is a wholly-owned subsidiary of Security National Master Holding Co. (SNMHC) and has offices in Sacramento, California and Baton Rouge, Louisiana.
SNMHC's core business is buying and servicing distressed residential and small balance commercial mortgages. The agency's analysis and servicer ratings exclude commercial mortgage servicing performance.
Moody's views SN's servicing stability as below average. The assessment downgrade reflects the increasingly difficult market conditions that have placed pressure on the financials of the parent and servicing operations of SN, according to Moody's.