Roundup: HomEq Ratings Upgraded by Fitch and S&P.(HomEq Servicing)

HomEq Servicing, a subsidiary of Wachovia Corp., has earned upgrades to obtain the highest residential servicer ratings from Standard & Poor's and Fitch Ratings.

S&P raised its ratings on HomEq as a residential subprime loan servicer and residential alternative loan servicer to "strong" from "above average."

Fitch upgraded HomEq as a residential primary servicer ratings for Alt-A and subprime products to 'RSS1' from 'RSS2-' and its special servicer rating to 'RSS1' from 'RSS2-."

HomEq said the ratings should pave the way for the company to grow its subservicing business.

"We are extremely excited that S&P and Fitch see such positive things in our organization," said Art Lyon, president of HomEq. "These ratings give us tremendous leverage among our competitors to attract the most valuable third-party servicing clients."

"Changes in the HomEq platform over the previous 18 months have been significant as reflected in Fitch's ratings," said Rick Lee, executive vice president and head of business development for HomEq. "These ratings are a result of HomEq's unique combination of technology, servicing expertise and people."

"Over the past three years, HomEq has reshaped its organization, procedures, processes, controls and technology and is emerging as an innovative leader in subprime, Alt-A and special servicing," said Diane Pendley of Fitch in a statement released by the company.