HML residential servicer ratings move up a notch

Fitch Ratings has upgraded HML’s residential mortgage special servicer rating to RSS2from RSS3+.

It has also affirmed its UK residential mortgage primary servicer ratings at RPS2+ prime and RPS2+ sub-prime.

At the end of 2010, HML’s special servicing team were servicing nearly 40,000 loans worth almost £5bn. Its primary servicing portfolio was made up of more than 336,000 mortgages valued at £36.9bn a decrease of 18% by value and 8.5% by number of loans.

In December 2010 GMAC-RFC moved the servicing of its £3.6bn mortgage book in-house and Nationwide followed suit in January, moving its £2bn book in-house.

Fitch notes that while HML’s headcount has reduced by 12% over the past 12 months it has continued to meet client expectations.

Brian Brodie, chief executive officer of HML, says: “We have worked intelligently to create strategies that have a positive impact on our clients’ mortgage portfolios.

“I’m encouraged by Fitch’s rating and am confident that scheduled improvements will enhance our offering.”