The Primary Residential Mortgage Servicing and Special Residential Mortgage Servicing of First National Financial LP (FNF) has been given a “Good” rating from DBRS.
The credit bureau says that FNF’s ratings are based on a review of its company and management, asset administration, loss management, technology, financial condition and controls and compliance; since its last review in May 2017.
FNF has been originating and servicing residential loans for 30 years and has, since 2009, taken steps to improve servicing capability and efficiency in the face of a challenging economic environment and rapidly increasing mortgage delinquencies and defaults.
DBRS says that FNF’s rate of mortgage delinquencies have stabilized and decreased significantly following a cleanup of seriously delinquent files, all of which were paid out in full.
Low delinquencies, high MI confidence
FNF’s overall cure rate for delinquent mortgages within 120 days remained high at approximately 99% in 2017, according to DBRS estimates.
The rating also reflects the high level of confidence in FNF from mortgage insurers, with 82% of the lender’s serviced portfolio insured and no claim ever rejected.
Technology investment has also contributed to its rating including implementation of paperless technology.
Ability to grow
DBRS also considered FNF’s ability to grow mortgages under administration and capitalize on servicing economies of scale.
As of December 31, 2017, the lender had approximately $101.6 billion ($77.4 billion residential and $24.2 billion commercial) in mortgages under administration; and is Canada’s largest non-bank originator and underwriter of mortgages.