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Other B&C Firms Also Under Review.

Mortgage Servicing News

| May 01, 2007 | COPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

New York -- In March, Fitch Ratings warned that the effect of the liquidity crisis in the subprime mortgage space could lead to ratings downgrades for B&C mortgage servicers. The rating agency quickly illustrated the point by downgrading two subprime servicers.

Fitch placed NovaStar Mortgage's "RPS2-" servicer rating for subprime home loans on Rating Watch Negative status, noting that the challenging conditions in the subprime marketplace have created uncertainties about NovaStar Financial's prospects.

Fitch also downgraded AMC Mortgage Services' primary servicer rating for subprime product to "RPS3+" from "RPS2+." The company's special servicer rating was lowered in a similar fashion. Fitch also placed the servicer ratings on Rating Watch Negative status.

AMC is a ...

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Source: HighBeam Research, Other B&C Firms Also Under Review.

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