- We raised our overall rankings on U.S. Bank N.A. to ABOVE AVERAGE from AVERAGE as a residential mortgage primary and subprime servicer.
- The rankings reflect enhanced business line controls necessary to operate effectively in a complex servicing environment as well as augmented servicing capabilities providing efficiencies and a degree of scalability to the operations.
- U.S. Bank N.A. provides commercial and residential banking services including mortgage servicing with more than 2,800 employees across its servicing platform. Servicing operations are primarily located in Owensboro, Ky.; Cincinnati; and Irving, Texas.
- The outlooks were revised to stable.
NEW YORK (S&P Global Ratings) Aug. 13, 2019--S&P Global Ratings today raised its overall rankings to ABOVE AVERAGE from AVERAGE on U.S. Bank N.A. as a residential mortgage primary and subprime servicer. The outlooks were revised to stable. Our rankings reflect:
- An experienced senior leadership team that has remained stable following a number of changes stemming from its well-executed strategic transition over the last several years.
- A sound risk management and control framework to monitor and detect risk.
- Seasoning of its vendor management framework that includes a level of rigor and oversight that is comparable to similarly ranked peers.
- A good level of technology throughout the operation.
- Proactive collections and loss mitigation strategies, which are notably beneficial for managing the subprime portfolio.
- Servicing performance metrics that are generally in line with similarly ranked peers.
- Industry experience levels for some of the default management team that are lower than peers.
Furthermore, we note U.S. Bank N.A.'s strengthened business control practices; most notably, vendor oversight, change management, and procedures governance are increasingly vital to operate effectively in the current servicing environment and are now more in line with what we see from ABOVE AVERAGE ranked servicers. We also recognized its investments in technology and process improvements across its loan administration functions. This provides efficiency, operational performance, and modernized self service capabilities with the ability to scale if needed. Since our prior review (see "Servicer Evaluation: U.S. Bank N.A.," published Sept. 21, 2017), the following changes and/or developments have occurred:
- U.S. Bank N.A. consolidated certain call centers to its Irving, Texas servicing site.
- It completed the implementation and seasoning of certain first-line-of-defense control frameworks across all servicing lines of business.
- It augmented its training capabilities with a new portal for career development and an expanded new-hire customer service training program.
- During 2019, it transitioned to a new borrower portal that provides additional self-service functionality.
- It transitioned handling of tax related calls to its tax vendor and implemented passive homeowner association lien monitoring.
- It rolled out multiple loss mitigation strategies targeting borrowers in the process of selling their home and those affected by natural disasters and large scale life events.
The outlooks were revised to stable from positive reflecting our base-case expectation that U.S. Bank N.A. will continue to perform as an overall effective residential primary and subprime servicer. Its experienced senior management team continues to invest in technology and make the procedural adjustments necessary to administer its servicing portfolio in an increasingly complex environment. In addition, it continues to maintain practices and collections and loss mitigation strategies necessary for its subprime servicing portfolio. The financial position is SUFFICIENT.
- U.S. Bancorp, July 11, 2019
- Select Servicer List, June 25, 2019
- Analytical Approach: Global Servicer Evaluations Rankings, Jan. 7, 2019
- Servicer Evaluation: U.S. Bank N.A., Sept. 21, 2017
|Secondary Contact:||Leigh Stafford McLean, Farmers Branch + 1 (214) 765 5867;|
|Servicer Analyst:||Jason Riche, Farmers Branch + 1 (214) 468 3495;|
|Analytical Manager, Servicer Evaluations:||Robert J Radziul, New York (1) 212-438-1051;|
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: firstname.lastname@example.org.