Fitch Lowers Financial Freedom’s Servicer Rating

April 10th, 2009 | by John Yedinak Published in Financial Freedom, News, Reverse Mortgage, Servicers | 4 Comments

Fitch Ratings recently announced it assigned Financial Freedom Acquisition LLC, a subsidiary of OneWest Bank, FSB, a residential primary specialty reverse servicer rating of “RPS3-“. According to the press release, the drop in rating reflects the limited operating history of OneWest Bank, FSB, a newly formed, non publicly rated entity.

Headquartered in Irvine, CA, Financial Freedom continues to operate its servicing platform from Austin, TX and Kalamazoo, MI. As of February 2009, Financial Freedom serviced a portfolio of approximately 163,000 loans with a UPB of nearly $23.1 billion.

Fitch completed its operational review of the company’s reverse servicing platform in January 2009, prior to the completion of the sale, and confirmed that although the company experienced some operational challenges and disruptions during the past year, they continue to be a capable servicer with a demonstrated ability to adequately manage their reverse mortgage portfolio.

Fitch will continue to monitor Financial Freedom’s servicing platform and the potential effect the change in ownership may have on its loan servicing and operational capabilities.

Technorati Tags: Reverse Mortgage,News,HECM,FHA,HUD,IndyMac,Financial Freedom

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Ms. Former FF Gal

I suspect and expect that FF retail and wholesale (not the servicing dept) will be out of business by year’s end due to mismanagement and interest-rate gouging of seniors.

Did you know that FF has the highest margins in the industry now?! The sales force won’t be able to compete – even if the numbers work. Less seniors will qualify with FF …with such high margins.

I hear that FF doesn’t care. They want PROFIT and more profit with less loans. What the FF bad managers don’t realize is that there is a price-point. If prices are too high people will do business elsewhere. Senior that do business with FF and not only get bad and slow service but also get ripped-off. Just another bone-headed move from FF’s upper management.

I feel badly for the current employees of FF. I hope they can all get out now and secure a career with a quality and ever-lasting lender.

It saddens me that what was a GREAT company under Jim Mahoney has been run into the ground by the trenchmen (and woman) of IndyMac.

Me
Paul

Right-on former FF gal….the ship is “sinking” fast! Perhaps new ownership will try and sell FF retail/wholesale biz before it hits “rockbottom”.
http://wwwcoastallendingreversemortgage.com gil greene

We had LOAN STILL IN ff WHEN THEY SWITCHED. NEEDLESS TO SAY THEY HAVE REAL PROBLEMS GETTING THING DONE. i DOUBT THEY WILL BE AROUNG BY ENDOFYEAR.
http://Trustmark.com Current FF Correspondent

OMIGOSH !!!!!! FF has hit the skids. Total turn time for new loans is +20 days (that’s business days). I have called everyone I know at FF and can’t get much help. They are so overwhelmed since the closing of the CA office. Who’s brillant idea was that, just before the end of the month? On March 20th they shifted all of their underwriting and closing operations to the GA office. I had 5 loans in with them at that time and have only managed to get 1 of them closed. 2 of them have showed no change in the system since 3/20/09.
I’ve hung in there with them for years through many many changes, but I’ll never put all my eggs in their basket again. Shame on me for letting this happen. I should have seen it coming with the huge exodus of good people over the past few years. I’m guessing they will not rank in the top 10 of rm companies next year for sure. Perhaps not at all.

Fitch Lowers Financial Freedom’s Servicer Rating

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