-- We affirmed our ABOVE AVERAGE ranking on First National Financial L.P.
as a residential mortgage servicer.
-- We also affirmed our ABOVE AVERAGE subrankings for management and
organization and loan administration.
-- Our rankings reflect the company's stable and experienced management
team and efficient servicing operations.
Nov 30 - Standard & Poor's Ratings Services today affirmed its ABOVE
AVERAGE ranking on First National Financial L.P. (FNF) as a residential mortgage
servicer in the Canadian market. The outlook is stable.
In addition, we affirmed our subrankings for management and organization and
loan administration at ABOVE AVERAGE. In accordance with our criteria, we
believe the financial position to be SUFFICIENT.
MAJOR RANKING FACTORS
-- Effective and tenured senior management;
-- Sound technology environment; and
-- Manageable staff turnover.
-- Less than significant tenure of middle management and some staff.
The overall ranking reflects our view of FNF's stable and experienced
management team and staff and more than 20-year history of originating and
servicing residential loans for its own book and for third-party investors.
The ranking also reflects our view of the company's efficient technology,
regularly scheduled system and process enhancements, sound internal controls,
sound default management, and effective customer service.
In our opinion, FNF has built an effective management team that continually
seeks to improve the company's overall operations. The company has
successfully reengineered its processes over the past several years, in our
view, and now operates in a virtually paperless environment with improved
workflow. We believe FNF's ongoing focus on staff training and development,
along with its prudent risk management methodologies, have supported the
company's consistent growth. FNF continues to employ enhanced technologies,
and continues to improve its borrower Web site. Moreover, the company has
opened an office in Quebec to further serve borrowers in provinces in the
eastern sections of Canada. Senior management has indicated that it recognizes
the importance of a well-trained staff and has made continued enhancements to
the training it provides to all employees.
The outlook is stable. FNF continues to exhibit strong and consistent growth
in its residential loan portfolio. The residential portfolio now totals
approximately 170,000 loans with an aggregate unpaid principal balance (UPB)
of approximately $38 billion. We believe the company maintains robust
origination channels that promote continued, managed growth. We expect that
FNF will maintain its position as a leading originator and servicer of
residential mortgages. Standard & Poor's believes the company to be well
structured, organized, and directed to handle future growth.
RELATED CRITERIA AND RESEARCH
-- Servicer Evaluation: First National Financial L.P., Aug. 9, 2010
-- Revised Criteria For Including RMBS, CMBS, And ABS Servicers On
Standard & Poor's Select Servicer List, April 16, 2009
-- Servicer Evaluation Ranking Criteria: U.S., Sept. 21, 2004