Which means no other UK servicer holds a higher primary servicer rating.
At the end of 2010, HML’s special servicing team, which had been upgraded to RSS2-, were servicing nearly 40,000 loans worth almost £5bn and HML’s primary servicing portfolio was made up of more than 336,000 mortgages valued at £36.9bn.
In upgrading HML’s special servicer rating, Fitch cited the industry experience of HML’s senior management as well as ‘continued improvements to operational performance surrounding the management of defaulted mortgage loans’ as key factors.
Fitch also noted HML’s use of ‘innovative workout strategies, including loan modifications and bespoke scorecard analytics, which have aided HML in improving the intensity and focus of collections and recovery performance’.
In affirming HML’s primary servicer rating, Fitch acknowledged HML’s 23 years of experience administering UK mortgages and servicing residential mortgage backed securities (RMBS) transactions.
Other strengths identified by the international ratings agency include:
- HML’s diversified client base, supported by the provision of over 100 standby contracts for 15 clients worth £27bn
- HML’s continued support from its parent company Skipton Building Society
- HML’s robust internal audit and governance plan
Brian Brodie, HML’s chief executive officer said:
“Special servicing is an area of our business that continues to deliver real value for our clients and it is great that Fitch have followed last year’s unprecedented double upgrade with a further upgrade this year.
"We have worked intelligently to create innovative strategies that have a significant positive impact on our clients’ mortgage portfolios. I’m encouraged by Fitch’s rating and I’m confident that further scheduled improvements will enhance our offering further.
“Our primary servicer rating reflects the professionalism of HML’s entire operation and it is a strong message that will give confidence to current and future clients.”
