Morningstar Credit Ratings Highlights FCI Lender Services
Proquest LLC |
Morningstar Credit Ratings raised its residential special servicer ranking for FCI Lender Services to 'MOR RS2' from 'MOR RS3.'
In a release on
Key factors in
-Strong management and professional depth: The company has a highly tenured management team and relevant industry experience as a special servicer for mortgage brokers and private investors as well as extensive operating history as a special servicer for more than 30 years.
-Effective control environment: FCI has acceptable risk avoidance methodologies in place and effective controls in key servicing areas that include a sound internal audit program designed to encompass all areas of operational risk. The company also engages a third- party auditing firm to conduct a SOC 1 exam (SSAE 16) on an annual basis and recently hired an attorney to fulfill ongoing corporate- wide compliance functions. In addition, management has represented that FCI is compliant with the 2013 California Homeowner Bill of Rights and will be fully compliant with the
-Innovative technology platform: FCI's unique and highly functional proprietary loan servicing web portal for investors provides real-time communication and extensive analytics that allow investors to drive their asset resolutions. The company's menu- driven web portal provides third-party customers the ability to efficiently upload loan files for servicing based on a transparent fee schedule posted on the website. During 2013, the company introduced proprietary technology enhancements that improve workflow efficiencies and productivity while providing management with improved performance monitoring and reporting. We also believe the company, with the potential for significant third-party servicing agreements based on current market trends, is well- positioned with excess capacity, both internally and via third-party vendors, if portfolio volume increases.
-Effective disaster recovery and business continuity plan: FCI's technology environment supports an effective disaster recovery and business continuity protocol. Network security, password administration, and borrower data confidentiality policies are clearly defined and routinely tested.
-Comprehensive training programs and written policies: FCI has acceptable training regimens in place for new hires commensurate with the size of the company. Proactive practices and procedures governing special servicing administration are in place as well as policies and procedures that are embedded with effective protocols designed to promote prudent loan servicing practices throughout the organization.
FCI is a licensed debt collector in all 50 states and the
FCI employs approximately 70 individuals in its loan servicing operations located in
Morningstar Credit Ratings is a subsidiary of Morningstar, Inc., a provider of investment research.
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