Fitch Affirms Bridgefield's 'RSS3-' Special Servicer Rating; Withdraws Subprime Rating

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has taken the following rating actions for the U.S. residential mortgage servicer ratings for Bridgefield Mortgage Company (Bridgefield, f/k/a ResMAE Mortgage, Inc.):

--Residential special servicer rating affirmed at 'RSS3-';

--Residential primary servicer rating for subprime product 'RPS3-' withdrawn.

The special servicer rating is based on Bridgefield's experienced management and robust servicing technology, competent default management ability, and established processes for managing and liquidating non-performing loans and real estate owned (REO) assets. The withdrawal of the rating for primary servicer of subprime product is due to lack of information specifically regarding volume of first lien subprime assets. In addition, the ratings were determined in accordance with Fitch's criteria 'Rating U.S. Residential Mortgage Servicers' and 'Global Rating Criteria for Structured Finance Servicers'.

Bridgefield is located in Overland Park, KS and is owned by an affiliate of Citadel Investment Group, L.L.C. Bridgefield's servicing management averages 19 years of industry experience. As of Jan. 31, 2010, Bridgefield's servicing portfolio totaled approximately 2,600 first and second lien subprime loans for approximately $530 million. However, during the review, Bridgefield was also performing a limited scope engagement for a mortgage insurance company consisting of contacting delinquent borrowers in an effort to determine the borrower's situation and facilitate a resolution with the borrower's current servicer.

Bridgefield's servicing technology includes its proprietary Servicing Module, an internally developed and supported application that wraps the core servicing system. The initial focus in developing the Servicing Module was on loss mitigation applications and the system incorporates proprietary models for probability of default, loss projection, and best execution in an effort to determine the most appropriate resolution for delinquent loans. Bridgefield's borrower website facilitates live chat in addition to providing online access to historical billing statements, payment histories, ARM counseling, applying for assistance to resolve delinquencies, and the capability to make payments.

Fitch has reviewed the company's servicing operations and believes that Bridgefield has the infrastructure and technology to support its servicing portfolio. However, Fitch is concerned that no new loans have been added to Bridgefield's servicing platform since the initial boarding of the legacy ResMAE loans in January 2008 and that the servicing portfolio continues to run off at a significant pace. Fitch will continue to monitor Bridgefield's ability to maintain performance as it pursues its servicing initiatives in this high delinquency environment.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'Rating U.S. Residential Mortgage Servicers', dated Nov. 29, 2006 and 'Global Rating Criteria for Structured Finance Servicers' dated Sept. 30, 2009, which are available on the Fitch Ratings web site at www.fitchratings.com.

Additional information is available at www.fitchratings.com.

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CONTACT:

Fitch Ratings, New York
Thomas Crowe, +1-212-908-0227
Diane Pendley, +1-212-908-0777
or
Sandro Scenga, +1-212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Professional Services  Banking  Finance

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