Cenlar Ratings

FITCH AFFIRMS CENLAR FSB’S U.S. RMBS SERVICER RATINGS
December 7, 2016 – Fitch Ratings-New York: Fitch Ratings has affirmed the U.S. residential mortgage servicer rating for Cenlar FSB (Cenlar) as follows:

–U.S. residential primary servicer rating for prime product at ‘RPS2’Outlook Stable.

The rating affirmations and Stable Outlook reflect Cenlar’s experienced management team, well developed servicing platform, effective corporate governance structure, platform growth, continued investment in technology, and the financial strength of its parent, Cenlar Capital Corporation (CCC), and the company’s growth.

Cenlar maintains a very effective and experienced management team that averages 30 years’ industry experience. Cenlar’s succession plan seeks to identify next generation candidates, who would be able to step in and take over existing positions as needed. The servicer continued to make enhancements to its systems and processes, which include improvements to its web and telephony systems and increased oversight functionalities.

Cenlar’s operations risk management and quality control program is modeled after Six Sigma quality principles. Cenlar uses a traditional three-lines-of-defense which includes extensive exception reporting, monitoring and self-assessment by the operational areas.

During this review period, the servicer strengthened and improved its operational areas through increased staffing and reporting functionalities. Fitch believes the continued enhancements made by the servicer strengthen its ability to comply with its regulatory servicing obligations while it grows.

Since the last review period, the servicer has grown its servicing portfolio by 71% and increased its full-time equivalents (FTEs) by 69%. The servicer expanded to two new locations in Tempe, AZ in addition to its five locations in Ewing, NJ. As of September 30, 2016, the servicer’s staffing totaled 1,867.

Cenlar, an operating subsidiary of CCC, is a privately held (employee-owned), federally chartered savings bank. Fitch does not rate the credit or financial strength of Cenlar or its parent CCC. However, Fitch’s financial institutions group reviewed Cenlar’s financial statements to provide an internal assessment, as a company’s financial condition is a component of Fitch’s servicer rating analysis.
As of Sept. 30, 2016, Cenlar serviced approximately 2.3 million loans totaling $500 billion.
Source: Primary Analyst, Michael Laidlaw, Director +1-212-908-0251; Secondary Analyst, Harper Williams, Committee Chairperson, Roelof Slump, Managing Director +1-212-908-0705; www.fitchratings.com

Cenlar FSB Ranking as a Residential Mortgage Primary Servicer Affirmed at STRONG; Outlook Stable

October 18, 2016 NEW YORK (Standard & Poor’s) –S&P Global Ratings today affirmed its STRONG ranking on Cenlar FSB (Cenlar) as a residential mortgage primary (prime) servicer. The Outlook is Stable.

MAJOR RANKING FACTORS

  • Successful growth of Cenlar’s subservicing portfolio in a competitive environment without encountering any substantive operational difficulties.
  • Good experience levels for senior and middle managers in addition to competitive overall turnover levels.
  • A fine training program.
  • An enterprise risk management organization that applies multiple levels of internal controls to identify, assess and remediate organizational risk.
  • No material Regulation AB, Uniform Single Audit Program, internal audit, or Statement on Standards for Attestation Engagements 16 findings.
  • A well-designed technology environment.
  • An exemplary number of calls monitored in customer service.
  • Quantitative metrics that compare favorably with its peer group.
  • Sound default management processes.
  • No unified enterprise governance, risk, and compliance system.
  • No web portal for customers to upload workout-related documents.

KEY CHANGES SINCE STANDARD & POOR’S LAST REVIEW

  • Cenlar opened another servicing site in Tempe, Ariz.
  • It began establishing a quality assurance function as another first line of defense.
  • The company’s servicing reporting area developed various new reports and other enhancements that have resulted in better tracking and productivity.
  • It introduced some additional boarding validations to reduce inconsistencies and errors.
  • It revised the insurance letters to make them more consumer-centric.
  • Cenlar implemented workforce management software to better forecast staffing volumes during high customer contact timeframes.

OPINION
Standard & Poor’s Ratings Services ranking on Cenlar FSB is STRONG as a residential mortgage primary loan servicer. Our rankings reflect the company’s fine experience levels, generally good servicing metrics, solid and multiple levels of internal controls, and proven ability to increase its subservicing business. Our outlook on the ranking is stable.

Cenlar continues to reflect generally good performance metrics per data collected via S&P Global Ratings’ proprietary Servicer Evaluation Analytical Methodology (SEAM) questionnaire. The company also continues to increase its servicing portfolio while concurrently investing in its infrastructure to ensure it has the appropriate staffing, controls, and technology in place to service a larger number of accounts.

Cenlar’s various auditing mechanisms include departmental, quality control, compliance, internal audit, and a separate vendor exam. Further revisions are in the process of being implemented in some of these areas to further refine and strengthen processes. The company has good oversight over vendor and complaint management functions and is well-experienced in both boarding and transferring loans from its portfolio given its history as a private label subservicer. Call center metrics are competitive with its peers’, and its default management practices seek to provide borrowers with alternatives to legal actions when the account becomes delinquent.

OUTLOOK
The outlook is stable. Cenlar has numerous improvements planned over the next 12 months that we believe will improve its operational effectiveness by affecting its systems and internal control environment. It continues to evidence generally fine servicing metrics, as well as a thorough internal control environment that is in the process of undergoing some further enhancements to strengthen the organization’s risk culture. We believe Cenlar will remain an effective residential loan servicer in the mortgage industry.

RELATED CRITERIA AND RESEARCH
Related Criteria

  • Revised Criteria For Including RMBS, CMBS, And ABS Servicers On Standard & Poor’s Select Servicer List, April 16, 2009
  • Servicer Evaluation Ranking Criteria: U.S., Sept. 21, 2004

Related Research

  • Select Servicer List, Aug. 10, 2016
  • Servicer Evaluation: Cenlar FSB, July 13, 2015

Source: Standard & Poor’s, Service Analyst: Steven L. Frie, New York (1) 212-438-2458; Steven.frie@spglobal.com; Secondary Contact: Mark J Shannon, New York (1) 770-680-5185; mark.shannon@spglobal.com; Analytical Manager, North America Servicer Evaluations: Robert J Radziul,
New York (1) 212-438-1051; Robert.radziul@spglobal.com


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  • December 8, 2015
    FITCH AFFIRMS CENLAR FSB’S U.S. RMBS SERVICER RATINGS
    December 8, 2015 – Fitch Ratings-New York: Fitch Ratings has affirmed the U.S. residential mortgage servicer rating for Cenlar FSB (Cenlar) as follows:

    –U.S. residential primary servicer rating for prime product at ‘RPS2′. The Rating Outlook is Stable.

    The affirmation and Stable Outlook reflect Cenlar’s established servicing platform and strength of its management team.

    The company has been servicing residential loans since 1970 and non-agency RMBS loans since 1994. The servicer maintains a highly integrated servicing platform. It utilizes Black Knight Financial Services’ Mortgage Servicing Package (MSP) as its primary servicing system of record. It also maintains a dedicated team that uses various proprietary tools and enhancements. Cenlar continues to invest in its servicing platform, including enhancements to its web and telephony systems to provide greater self-service opportunities to its borrowers.

    Cenlar has an effective enterprise risk management (ERM) structure and has made enhancements to its quality assurance and compliance testing programs. The company maintains three levels of risk management: internal audit, ERM, and compliance. Risk rankings are completed annually and the servicer performs monthly formal performance reviews of all operational areas and conducts risk assessment by meeting with individual operational managers to determine or identify the risks. Fitch believes the continued enhancements made by the servicer strengthen the company’s ability to comply with its regulatory servicing responsibilities.

    Over the past year, the servicer has grown its servicing portfolio by approximately 29% and increased its full-time equivalent (FTE) servicing staff by 32%. To support its growing loan volume, the servicer has also expanded to a new location in Tempe, AZ, in addition to its four locations in Ewing, NJ.

    On Oct. 13, 2014, Cenlar announced that Gregory S. Tornquist, the company’s president and CEO since 2008, was elected as chairman of the board of Cenlar and its holding company, Cenlar Capital Corporation (CCC), which was made effective Jan. 1, 2015.

    Cenlar, an operating subsidiary of CCC, is a privately held (employee-owned), federally chartered savings bank. Fitch does not rate the credit or financial strength of Cenlar or its parent CCC. However, Fitch’s financial institutions group reviewed Cenlar’s financial statements to provide an internal assessment, as a company’s financial condition is a component of Fitch’s servicer rating analysis.

    The servicer continues to be an active participant in the servicing of new prime RMBS issuances, and since 2013, has been the industry’s most active servicer of securitized RMBS prime transactions, servicing approximately 19,000 loans totaling approximately $11 billion.

    As of Sept. 30, 2015, Cenlar serviced approximately 1.65 million loans totaling $351 billion. This is further broken down as 19,139 non-agency prime RMBS loans totaling $11 billion; 1,364,689 GSE loans totaling $273 billion; and 260,804 other loans totaling $66.8 billion being serviced. Other loans include clients’ assets, private investors, housing authority, jumbo, HELOC, ALT-A, and second mortgages.

    Source: Primary Analyst, Michael Laidlaw, Director +1-212-908-0251; Secondary Analyst, Roelof Slump, Managing Director +1-212-908-0705; www.fitchratings.com

  • June 17, 2015
    Cenlar FSB Ranking as a Residential Mortgage Primary Servicer Affirmed at STRONG; Outlook Stable
    June 17, 2015 NEW YORK (Standard & Poor’s) –Standard & Poor’s Ratings Services today affirmed its STRONG ranking on Cenlar FSB as a residential mortgage primary servicer. The Outlook is Stable.MAJOR RANKING FACTORS
    Strengths:
    • Long operational track record;
    • Highly experienced, well-tenured senior management team;
    • Very low turnover for management and staff;
    • No outstanding material lawsuits;
    • Comprehensive, well-disciplined training programs;
    • Solid internal and external controls;
    • Robust data analytics and performance measurement methodologies; and
    • Well-automated systems environment.Weakness:
    • Elevated telephony statistics in its collections department (average speed of answer (ASA) of 60 seconds and abandonment rate of 5.0%), which compare unfavorably with its peers.KEY CHANGES SINCE STANDARD & POOR’S LAST REVIEW
    • Increased staffing levels in tandem with growth in the portfolio; the number of full time servicing staff increased by approximately 40%, while the number of loans in the servicing portfolio grew approximately 53%.
    • Established a new training structure, headed by a VP of education and talent management.
    • Implemented a predictive dialer, speech analytics, and client portal technology into its systems platform.
    • Opened a second call center and divided customer service and default servicing operations across two buildings, each with a separate electric grid and provider.
    • Added eight compliance monitoring and testing analysts, divided into two units: non-default servicing and default servicing.
    • Established a team to manage its policies and procedures (P&Ps), including a new P&P manager and technical writers.
    • Purchased a technology platform to manage its P&Ps.
    • Automated systems to monitor its vendors’ regulatory compliance.
    • Created new departments to support its growth and servicing operations including home equity line of credit (HELOC), transfer operations, client management, external audit support, and a corporate P&P control team.
    • Began to use its dialer for outbound calls to automate welcome calls and for event-driven and special client programs.
    • Increased its number of bilingual agents in its default service center to approximately 40% from approximately 10%.
    • Transitioned certain bankruptcy processes from a third-party vendor to its in-house bankruptcy department.OPINION
    Standard & Poor’s Ratings Services ranking on Cenlar FSB is STRONG as a residential mortgage primary loan servicer. This is supported by our STRONG subrankings for Management and Organization, and Loan Administration. We affirmed our ranking on Cenlar to reflect our view of its long operational track record, highly experienced, well-tenured senior management team, comprehensive training program, solid internal and external controls, robust data analytics and performance measurement methodologies, and consistent enhancements to its technology and systems platform. We believe Cenlar’s strengths partly are offset by elevated telephony statistics in its collections department (ASA of 60 seconds and abandonment rate of 5.00%), which compare unfavorably with its peers.One of the leading subservicers in the U.S., with approximately 140 subservicing relationships, Cenlar provides customized services to its clients, while maintaining compliance with regulatory and investor requirements. The company’s portfolio profile has remained consistent throughout its long operational track record, with a focus on subservicing prime loans with low levels of delinquencies. As of Dec. 31, 2014, Cenlar serviced approximately 1.3 million prime loans with $266 billion in unpaid principal balance (UPB) for its various subservicing clients, a significant increase from approximately 849,000 loans at the time of our last review. Since our last review, staffing levels rose in tandem with the portfolio size; the number of full time servicing staff increased by approximately 40%, while the number of loans in the servicing portfolio grew approximately 53%. In our opinion, Cenlar’s growth has been measured and controlled. The company’s staffing model is dynamic, includes macroeconomic factors, projects by position, and adjusts and re-budgets monthly. Cenlar says its practice is to hire six months in advance of an anticipated increase in business.Data collected via our proprietary Servicer Evaluation Analytical Methodology (SEAM®) questionnaire for the six months ending Dec. 31, 2014, indicate Cenlar’s overall servicing metrics compare favorably to its peers.OUTLOOK
    The Outlook is Stable. We believe Cenlar’s well automated systems environment, coupled with its focus on employee development and training and its solid internal and external control environment, form a firm foundation for the company to continue to provide a high level of servicing. In our opinion, Cenlar’s corporate culture and highly experienced, well-tenured management team should continue to provide stability to its residential mortgage servicing operation.

    RELATED CRITERIA AND RESEARCH

    Related Criteria
    • Revised Criteria For Including RMBS, CMBS, And ABS Servicers On Standard & Poor’s Select Servicer List, April 16, 2009
    • Servicer Evaluation Ranking Criteria: U.S., Sept. 21, 2004

    Related Research
    • U.S. Forecast Update: Same As It Ever Was, May 21, 2015
    • The U.S. Housing Market Get Its (Now Slower) Groove Back, Feb. 9, 2015

    Source: Standard & Poor’s, Servicer Analyst: Alicia Clarke, New York (1) 212-438-8805, alicia.clarke@standardandpoors.com; Secondary Contact: Joshua E Safchik, New York (1) 212-438-3813; joshua.safchik@standardandpoors.com www.standardandpoors.com/ratingsdirect

  • December 11, 2014
    FITCH AFFIRMS CENLAR’S PRIME RMBS SERVICER RATING
    December 11, 2014 – Fitch Ratings-New York: Fitch Ratings has affirmed Cenlar FSB’s (Cenlar) U.S. residential mortgage servicer rating as follows:–U.S. residential primary servicer rating for prime product at ‘RPS2′; Outlook Stable;

    The affirmation and Stable Outlook reflect Cenlar’s strong process and control environment, and its experienced staff and management team. Additionally, Cenlar has evidenced success in meeting its growth objectives while maintaining performance and quality standards.

    The servicer continues to be an active participant in the servicing of new prime RMBS issuances, and since 2013, has been the industry’s most active servicer of securitized RMBS prime transactions, servicing approximately 8,500 loans totaling $6.2 billion. Over the past two years, the servicer has nearly doubled the size of its servicing portfolio to 1.2 million loans serviced and saw full-time equivalent staff growth of 72%, primarily in the transfer operations, customer service, claims, bankruptcy and, tax and insurance departments.

    The servicer continues to hire experienced industry professionals in its servicing and management teams while making enhancements to its enterprise risk management structure through increased quality assurance and compliance testing. Cenlar reviews its risk rankings annually, and quality control functions are completed monthly for all major servicing functions. For the period ended Dec. 31, 2013, the servicer’s Regulation AB and USAP annual certifications indicated full compliance with no mater findings. Cenlar also indicated that it is not under any consent or regulatory orders. Fitch believes the continued enhancements will strengthen the servicer’s ability to comply with its regulatory servicing responsibilities.

    On Oct. 13, 2014, Cenlar announced that Gregory S. Tornquist, the company’s president and CEO since 2008, was elected as Chairman of the Board of Cenlar FSB and its holding company, Cenlar Capital Corporation (CCC), effective Jan. 1, 2015. He will succeed the current Chairman, Michael W. Young, who led the company from the time of its incorporation in 1984. Upon completion of this transition, Michael Young will continue with Cenlar in the new role of vice chairman of the board of both Cenlar FSB and CCC.

    Cenlar operates from four locations in Ewing, NJ and has been in existence since 1958 operating under the name of Larson Mortgage Company (Larson) as a traditional mortgage banking company. In 1984, Larson acquired Centennial Savings and Loan Association and changed its name to Cenlar. Cenlar began focusing on third-party subservicing and primary servicing for various financial entities in 1994. In early 1997, the servicer exited the retail banking and loan origination business and focused exclusively on third-party subservicing and primary servicing for various financial entities.

    Cenlar, an operating subsidiary of CCC, is a privately held (employee-owned), federally chartered savings bank. Fitch does not rate the credit or financial strength of Cenlar or its parent CCC. However, Fitch’s financial institutions group reviewed Cenlar’s financial statements to provide an internal assessment, as a company’s financial condition is a component of Fitch’s servicer rating analysis.

    As of Sept. 30, 2014, Cenlar serviced 1,270,976 loans totaling $252.1 billion. This is further broken down as 14, 214 non-agency prime RMBS loans totaling $7.3 billion; 1,021,596 GSE loans totaling $189 billion; and 234,448 other loans totaling $54.8 billion being serviced for private investors and a housing authority agency.

    Source: Primary Analyst, Michael Laidlaw, Director +1-212-908-0251; Secondary Analyst, Roelof Slump, Managing Director +1-212-908-0705; www.fitchratings.com.

    Cenlar FSB Residential Mortgage Primary Servicer Ranking Affirmed At Strong

    • We affirmed our STRONG ranking on Cenlar FSB as a residential mortgage primary servicer.
    • We believe Cenlar demonstrates a high level of ability and competence in managing its residential mortgage servicing portfolio.
    • The ranking reflects our opinion of Cenlar’s strong controls, knowledgeable and very experienced management team, and effective systems environment.
  • December 2, 2013
    Cenlar FSB Residential Mortgage Primary Servicer Ranking Affirmed At Strong

    December 2, 2013 NEW YORK (Standard & Poor’s) –Standard & Poor’s Ratings Services affirmed its STRONG ranking on Cenlar FSB, a residential mortgage loan servicer. This is supported by our STRONG subrankings for both Management and Organization and Loan Administration. We have affirmed our ranking on Cenlar to reflect our view of its seasoned management team and staff, robust data analytics and performance measurement methodologies, and consistent enhancements to its technology platform.

    Cenlar is primarily a third-party mortgage subservicer, focused on providing its clients and their borrowers with premier service. Cenlar has been appointed servicer on several 2013 new securitizations, and is one of the leading subservicers in the U.S., with more than 100 subservicing relationships. Cenlar’s focus is on loans with low levels of delinquencies. It has entered into strategic relationships to manage portfolios with higher amounts of delinquencies with another well-known special servicer at their clients’ request. Cenlar’s primary strength is its knowledge of the services that it provides and its decision to assume only loan portfolios that are appropriate for its business plan. Specifically, it has developed an infrastructure to handle its low-delinquency portfolio very efficiently.

    As of June 30, 2013, Cenlar serviced approximately 849,000 prime loans for $161 billion in unpaid principal balances (UPB) for its various subservicing clients. This was a significant increase from the 614,000 loans at our last review. Cenlar says its staffing model is to hire six months prior to an anticipated increase in business.

    In 2013, a major change was the transition to a full SPOC environment. All borrowers are now provided a SPOC at 45 days delinquent (before this year, SPOCS were only provided to certain clients on a pilot basis).

    Cenlar intends to be compliant with the Consumer Finance Protection Bureau (CFPB), by the implementation date in January 2014. We believe Cenlar maintains a balance between protecting investors’ interests while keeping borrowers in their homes. Data collected via our proprietary

    SEAM questionnaire show Cenlar’s reported servicing metrics are comparable with those of industry peers.

    Outlook

    The outlook is stable. In our last review, Cenlar had significant increases in average speed of answer (ASA) and abandonment rates in collection, customer service, and loss mitigation. Cenlar now maintains ASA’s that meet or exceed their peers at 34 seconds for customer service (5% abandonment rate); 31 seconds(5% abandonment rate) for collection and 42 seconds for loss mitigation(5% abandonment rate). Cenlar says it hired staff to address elevated telephony metrics, and now has a strategy to hire six months prior to an anticipated increase in volume.

    We believe Cenlar’s focus on controls, training, employee development, and its well-developed policies and procedures form a firm foundation continue to provide a high level of servicing to both their borrowers and investors. We believe the overall corporate culture and very experienced executive management team should continue providing stability to its residential mortgage servicing operation.

    Source: Standard & Poor’s, Primary Servicer Analyst: Todd N Niemy, New York (1) 212-438-2494; todd.niemy@standardandpoors.com; Secondary Contact: Alicia Clarke, New York (1) 212-438-8805; alicia.clarke@standardandpoors.com; www.standardandpoors.com/ratingsdirect.

  • December 13, 2013
    FITCH ASSIGNS CENLAR RMBS PRIME SERVICER RATING
    December 13, 2013 – Fitch Ratings-New York: Fitch Ratings has assigned the following U.S. residential mortgage servicer rating to Cenlar, FSB (Cenlar)
    –U.S. residential primary servicer rating for prime product assigned at ‘RPS2’; Outlook Stable;
    Fitch previously rated Cenlar between March 2004 to May 2008 for its primary prime, Alt-A, and specialty-subservicer products, but in February 2009, the servicer indicated that it would no longer be providing information to maintain the ratings since it was not actively involved in new RMBS transactions at that time and the ratings were subsequently withdrawn effective March 10, 2009. However, since January 2012, Cenlar has become an active participant in the servicing of new prime issuances. Previously, Cenlar was an approved ‘RPS2-‘ primary product servicer.
    Fitch does not rate the credit or financial strength of Cenlar FSB or its parent Cenlar Capital Corporation (CCC). Cenlar, an operating subsidiary of Cenlar Capital Corporation, is a privately held (employee-owned), federally chartered savings bank. However, Fitch’s financial institutions group reviewed Cenlar’s financial statements to provide an internal assessment, as a company’s financial condition is a component of Fitch’s servicer rating analysis.
    Cenlar operates from four locations in Ewing, NJ and has been in existence since 1958 operating under the name of Larson Mortgage Company (Larson) as a traditional mortgage banking company. In 1984, Larson acquired Centennial Savings and Loan Association and changed its name to Cenlar. In early 1997, the servicer exited the retail banking and loan origination business and began performing interim servicing, third-party subservicing and primary servicing for various financial entities.
    As of Sept. 30, 2013, Cenlar was servicing 964,942 loans totaling $182.6 billion. This is further broken down as 11,998 non-agency prime RMBS loans totaling $6.7 billion, 793,129 GSE loans totaling $143 billion; 159,077 other loans totaling $32.7 billion. (Other – Includes client asset loans, private investors, Housing Authority, Jumbo, HELOC, ALT- A loans & second mortgage). In addition, the servicer maintains a business relationship with an established special servicer that provides loss mitigation solutions for a portion of its severely delinquent loans.
    Cenlar maintains a highly integrated servicing platform and has been servicing residential loans for over 50 years and non-agency RMBS loans since 1994. The servicer utilizes LPS’s Mortgage Servicing Platform (MSP), as its primary servicing system of record and maintains a dedicated team that utilizes various proprietary tools and enhancements to perform its servicing functions. The servicer has a very experienced senior management team, that is averaging over 32 years industry experience, which is ably supported by its group and functional management teams that averaged nine and 11 years company experience respectively.
    The servicer maintains an effective control environment with highly structured internal audit, enterprise risk management, and compliance oversight capabilities. Cenlar indicated that risk rankings are determined annually and quality control functions are completed monthly for all major servicing functions. For the period ended Dec. 31, 2012, the servicer’s Regulation AB and USAP annual certifications indicated full compliance with no material findings. Cenlar also indicated that it was not under any consent or regulatory orders.
    Source: Primary Analyst, Michael Laidlaw Director +1-212-908-0251; Roelof Slump, Managing Director +1-212-908-0075; www.fitchratings.com.
  • September 1, 2011
    Cenlar FSB STRONG Mortgage Loan Servicer Ranking Affirmed;
    Outlook is Stable
    OVERVIEW
    We affirmed our STRONG ranking on Cenlar FSB, a wholly owned subsidiary of Cenlar Capital Corp., as a residential mortgage loan servicer.
    The affirmation reflects Cenlar’s well seasoned management team, solid infrastructure, and sound controls in its servicing operations.
    Cenlar also exhibits solid risk management and thorough policies and procedures.
    September 1, 2011, New York, (Standard & Poor’s) – Standard & Poor’s Ratings Services today affirmed its STRONG ranking on Cenlar FSB (Cenlar), a wholly owned subsidiary of Cenlar Corp., as a residential mortgage loan servicer. The outlook is stable.
    The overall rankings are supported by STRONG subrankings for management and organization and loan administration.The ranking affirmation reflects the company’s well seasoned management team, solid infrastructure, and sound controls in its servicing operations.
    As a third-party mortgage servicer, we believe Cenlar remains focused on the importance of providing its clients and their borrowers with premier service. The company is one of the leading subservicers in the U.S., with more than 100 subservicing relationships. In late 2009, Cenlar substantially increased its servicing portfolio as a result of the collapse of Taylor Bean and Whitaker (originator and servicer) and the subsequent transfer of mortgage loans primarily from government-sponsored entities (GSEs).
    In our opinion, Cenlar maintains a sound level of automation and effective use of technology, has thorough policies and procedures, offers its staff extensive and comprehensive training programs, and has demonstrated default management expertise. Operational metrics Cenlar provided through Standard & Poor’s SEAM (Servicer Evaluation Analytical Methodology) questionnaire indicate that the company compares, overall, favorably with other mortgage servicer we monitor. In our opinion; however, telephony statistics in collection and loss mitigation should be strengthened to align with current customer relations statistics.
    Cenlar’s dedicated and experienced process improvement team continuously evaluates its servicing operations technology, applications, and processes to improve operating efficiencies. Cenlar accomplishes this through reengineering, investing in technology, and contracting with business partners to perform traditional services. The company’s level of automation, solid management team, and default management expertise allows Cenlar to continue to minimize portfolio risk through reliable internal controls and prudent loan servicing practices. In addition, we believe the company’s extensive and comprehensive training programs, along with management’s commitment to employee development, have enabled Cenlar to successfully retain employees, which allows for a stable and constant operating environment.
    Overall delinquency statistics, based on the servicing portfolio characteristics, in our opinion, continue to align with relevant averages reported by the Mortgage Bankers Association of America. As a third-party servicer, Cenlar works with its clients to proactively identify alternatives to foreclosure.
    Outlook
    The outlook is stable for residential mortgage servicing. We believe that over the next 12 to 18 months, Cenlar will continue to focus on maintaining its firm operational performance and ensure that it has appropriate staff levels, vendor partners, and technology in place to effectively manage its servicing portfolios. In addition to servicing its clients’ portfolios, Cenlar provides interim servicing, which greatly expands the company’s annual servicing business. Standard & Poor’s believes that Cenlar will remain a solid residential mortgage loan servicer for a wide variety of investors.
    Source: Standard & Poor’s, Primary Servicer Analyst: Edward Highland, New York (1) 212-438-1287, edward_highland@standardandpoors.com; Secondary Contact: Todd Niemy, New York (1) 212-438-2494, todd_niemy@standardandpoors.com; www.standardandpoors.com/ratingsdirect.
  • November 17, 2009
    Cenlar FSB STRONG Residential Mortgage Loan Servicer Ranking Affirmed;
    Outlook Stable
    OVERVIEW
    We affirmed our STRONG ranking on Cenlar FSB, a wholly owned subsidiary of Cenlar Capital Corp., as a residential mortgage loan servicer.
    The affirmation reflects the company’s solid infrastructure, sound controls in its servicing organization, and well-seasoned management team.
    Cenlar also exhibits solid risk management, thorough policies and procedures, and extensive and comprehensive training programs.
    November 17, 2009, New York (Standard & Poor’s) – Standard & Poor’s Ratings Services today affirmed its STRONG ranking on Cenlar FSB (Cenlar), a wholly owned subsidiary of Cenlar Capital Corp. (Cenlar Capital), as a residential mortgage loan servicer. The outlook is stable.
    As a third-party servicer, Cenlar remains focused on the importance of providing its clients and their borrowers with premier service. Cenlar is one of the leading subservicers in the U.S., with more than 100 subservicing relationships. The company continues to maintain a solid infrastructure and sound controls in its servicing organization.
    Cenlar also has a well-seasoned management team, solid internal controls and risk management, and thorough policies and procedures, along with extensive and comprehensive training programs and demonstrated default management expertise. Moreover, Cenlar exhibits an excellent level of automation and effective use of technology. Metrics Cenlar provided through Standard & Poor’s SEAM (Servicer Evaluation Analytical Methodology) questionnaire indicate that the company compares favorably with similarly ranked residential mortgage industry participants.
    Cenlar has a dedicated and experienced process improvement team charged to evaluate its servicing operations technology, applications, and processes to improve operating efficiencies through reengineering, investing in technology, and contracting with business partners to perform traditional services. The company’s impressive level of automation, solid management team, and default management expertise allows Cenlar to continue to minimize portfolio risk through reliable internal controls and prudent loan servicing practices.
    Cenlar has solid delinquency statistics when compared with relevant averages reported by the Mortgage Bankers Association of America. In an effort to reduce borrower payment hardships and minimize future losses, Cenlar works with its clients to ensure that it effectively manages proactive policies with regard to adjustable-rate mortgage (ARM) resets. The company’s extensive and comprehensive training programs, along with management’s commitment to employee development, have enabled Cenlar to successfully retain employees.
    OutlookThe outlook is stable for residential mortgage servicing. Over the next 12 months, Cenlar plans to continue to focus on maintaining its sound operational performance and ensuring that it has appropriate staff and technology in place to manage its servicing portfolios effectively. Cenlar is an approved seller/servicer with Fannie Mae, Freddie Mac, Ginnie Mae, the Federal Home Loan Bank (FHLB), and the Federal Housing Administration (FHA). In addition to servicing its clients’ portfolios, Cenlar also provides interim servicing, which greatly expands its annual servicing business. Management remains committed to being the premier subservicer and wholesale bank through innovation, quality, and professional services to its clients and their borrowers. Standard & Poor’s believes that Cenlar will remain a solid residential mortgage loan servicer for a wide variety of investors.Source: Standard & Poor’s, Servicer Analyst: Edward Highland, New York (1) 212-438-1287; edward_highland@standardandpoors.com; www.standardand poors.com/ratingsdirect
  • March 12, 2009
    Cenlar FSB Discontinues Fitch Rating Services
    March 12, 2009, Ewing, NJ – A recent press release by Fitch Ratings, Inc. reported the withdrawal of Cenlar’s Resi Servicer Ratings but failed to report that the reason for such action was Cenlar’s decision to discontinue participation in this program. Cenlar had engaged both Standard & Poor’s and Fitch for their Private Securitization Subservicing program. Because this business line has been impacted by market changes, Cenlar has determined that both rating services were no longer necessary so they have chosen to eliminate the cost of the additional review by Fitch and will continue to utilize Standard & Poor’s as their Primary rating service. And, as a result, Cenlar will no longer supply Fitch with information to maintain the ratings.
    Prior reviews by both Rating Agencies have consistently confirmed that Cenlar has a strong and reputable servicing platform and is a fully qualified subservicer. Furthermore, it has been reported by both Agencies that the company’s capable and experienced executive and servicing management teams, enhanced internal procedures and controls, and effective technology platform are contributing factors in Cenlar’s success as a subservicer.Headquartered in Ewing, New Jersey, Cenlar FSB is a privately owned federally chartered wholesale bank specializing in mortgage and HELOC subservicing and is the leading subservicer in the country. Cenlar is committed to delivering quality professional service through its customized private label program to its client base. For more information about Cenlar, visit their website at www.cenlar.com.
  • August 12, 2008
    Cenlar FSB STRONG Residential Loan Servicer Ranking Affirmed;
    Outlook is Stable
    August 12, 2008, New York – Standard & Poor’s Ratings Services today affirmed its STRONG ranking on Cenlar FSB (Cenlar), a wholly owned subsidiary of Cenlar Capital Corp. (CCC), as a residential mortgage loan servicer. The outlook is stable.
    Cenlar continues to maintain a solid infrastructure and sound controls in its servicing organization. The company has a well-seasoned management team; solid internal controls and risk management; thorough policies and procedures; extensive and comprehensive training programs; and demonstrated default management expertise. Cenlar also exhibits an excellent level of automation and an effective use of technology. Metrics provided by Cenlar through Standard & Poor’s Servicer Evaluation Analytical Methodology (SEAM) questionnaire indicate that the company compares favorably with similarly ranked residential mortgage industry participants.
    Cenlar frequently evaluates its servicing operations technology, applications, and processes to improve its operating efficiencies through reengineering, investing in technology, and contracting with vendors to perform traditional services. The company’s impressive level of automation, solid management team, and default management expertise allows Cenlar to continue to minimize portfolio risk through reliable internal controls and prudent loan servicing practices. Cenlar evidences solid delinquency statistics when compared against relevant averages as reflected by the Mortgage Bankers Association of America. In an effort to reduce borrower payment hardships and minimize future losses, Cenlar is working with its clients to bring proactive policies with regard to adjustable-rate mortgage (ARM) resets into place. The company’s extensive and comprehensive training programs, along with management’s commitment to employee development, have enabled Cenlar to retain employees.
    Outlook
    The outlook is stable for residential mortgage servicing. Over the next 12 months, Cenlar will focus on maintaining its sound operational performance and ensuring that it has appropriate staff and technology in place to manage growth. Cenlar is an approved seller/servicer with the Government National Mortgage Association (Ginnie Mae), Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corp. (Freddie Mac), Federal Housing Administration (FHA), and Federal National Mortgage Association (Fannie Mae). Management remains committed to growing its residential mortgage subservicing business and Standard & Poor’s anticipates that Cenlar will remain a solid residential mortgage loan servicer for a wide variety of investors.Source: Standard & Poor’s

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