Fitch Affirms Shellpoint Mortgage Servicing

Fitch Ratings has affirmed the following U.S. residential mortgage servicer ratings for Shellpoint Mortgage Servicing (Shellpoint), fka Resurgent Mortgage Servicing (RMS):

--U.S. residential primary servicer rating for Prime product at 'RPS3+'; Outlook Stable;

--U.S. residential special servicer rating at 'RSS3+'; Outlook Stable.

The servicer rating affirmations and Stable Outlook take into account Shellpoint's experienced senior management team, systems and technology capabilities, effective enterprise-risk management practices and its effective recruiting and retention of experienced servicing managers. The rating also takes into consideration the financial support and oversight by its parent, New Penn Financial, LLC (New Penn).

Over the 12-month period ended Dec. 31, 2014, Shellpoint's portfolio has grown to over 116,000 loans totaling approximately $22.6 billion, from 78,515 loans totaling $14.9 billion. In December 2014, the servicer completed the final phase of the physical separation of its servicing platform from Resurgent Capital Services (RCS), the predecessor parent of RMS, and transitioned its human resources, legal, quality control, and compliance functions in-house. Shellpoint also developed its own in-house technology platform and upgraded its phone and network systems.

Shellpoint continues to execute on its strategic growth objectives. In 2014, Shellpoint successfully acquired Shelter Mortgage Company, a retail mortgage originator, and the servicer also expanded its GSE relationships to include direct servicing for GNMA and FNMA on distressed loan portfolios.

On Feb. 25, 2014, Fitch placed Shellpoint on Positive Watch based on the planned growth and demonstrated proficiency in its procedures, controls and loan administration functions. On March 1, 2014, New Penn acquired the assets and servicing portfolio of RMS from Sherman Financial Group. Fitch subsequently upgraded the servicer under its New Penn ownership and name change to its current ratings, on Oct. 21, 2014.

Shellpoint is a seasoned, high-touch loan servicer with a 15-year history through its predecessor, RMS, with its primary servicing site located in Greenville, South Carolina. The servicer's Houston, TX office provides additional staffing for redundant functions covering foreclosure, loss mitigation, default support, and investor reporting. Fitch will continue to monitor the performance of Shellpoint's servicing operations as it continues to pursue its growth initiatives.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria', dated Jan. 30, 2014;

--'Rating Criteria for Structured Finance Servicers', dated Jan. 30, 2014.

Applicable Criteria and Related Research:

Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731747

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983333

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