Overview
- Select Portfolio Servicing Inc. services almost 900,000 residential mortgage subprime, special, and subordinate-lien loans.
- We affirmed our overall STRONG rankings on Select Portfolio Servicing Inc. as a residential mortgage subprime, special, and subordinate-lien loan servicer.
- The outlook on the rankings is stable.
NEW YORK (S&P Global Ratings) July 22, 2021--S&P Global Ratings today affirmed its STRONG rankings on Select Portfolio Servicing Inc. (SPS) as a residential mortgage subprime, special, and subordinate-lien loan servicer. The outlook on the rankings is stable.
Our rankings reflect SPS':
- Competitive experience levels as compared against its peers', although its tenure levels are better;
- Comprehensive training programs;
- Well-designed overall information technology environment and infrastructure;
- Extensive array of proprietary applications, of which, several are either new or were enhanced over the last 12 months;
- Extensive multiple control mechanisms, such as compliance, quality control, and internal audits, that provide oversight over the servicing operation;
- Comprehensive call monitoring program;
- Good oversight and controls within complaint management;
- Servicing metrics that are very competitive with its peers', with call center statistics continuing to reflect excellent results;
- Sound default management practices; and
- Overall staff turnover rate that is higher than its peers' and with much higher turnover rates in the call center.
Since our prior review (see "Servicer Evaluation: Select Portfolio Servicing Inc.," published July 23, 2020), the following changes and/or developments have occurred:
- SPS augmented its Customer 360 HUB and Topic Tracker applications.
- SPS introduced additional robotic process automation, and implemented two additional agent-centric software tools known as Customer 360 Insights and CE Virtual Assistant.
- The percentage of registered website users increased substantially due to additional customer communications about the website and mobile application.
The outlook for the residential mortgage subprime, subordinate-lien, and special servicer loan rankings are stable. Although turnover was elevated, as it was for the prior analysis, it did not affect the overall qualitative and quantitative performance metrics. Call center performance statistics remain better than its peer group. The company has continued to invest in automation to increase productivity and efficiencies. SPS remains a highly proficient loan servicer of residential mortgage assets.
The financial position is SUFFICIENT.
Related Research
- Select Servicer List, June 3, 2021
- Research Update: Credit Suisse Outlook Revised To Negative On Concerns About The Group's Risk Management, March 30, 2021
- Servicer Evaluation Spotlight Report™: Environmental, Social, And Governance Factors Have Consistently Powered Our Servicer Evaluation Rankings, Nov. 16, 2020
- Servicer Evaluation: Select Portfolio Servicing Inc., July 23, 2020
- Analytical Approach: Global Servicer Evaluations Rankings, Jan. 7, 2019
This release does not constitute a rating action.
Servicer Analyst: | Steven L Frie, New York + 1 (212) 438 2458; steven.frie@spglobal.com |
Secondary Contact: | Mark J Shannon, New York + (404) 989-7655; mark.shannon@spglobal.com |
Analytical Manager, Servicer Evaluations: | Robert J Radziul, New York + 1 (212) 438 1051; robert.radziul@spglobal.com |
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