Servicer Evaluation: LoanCare LLC

S&P Global Ratings' ranking on LoanCare LLC (LoanCare) is ABOVE AVERAGE as a residential mortgage loan primary (prime) servicer. On Sept. 22, 2023 we affirmed the ranking (please see "LoanCare LLC ABOVE AVERAGE Residential Mortgage Loan Primary Servicer Ranking Affirmed; Ranking Outlook Stable"). The ranking outlook is stable. Our ranking reflects the company's: Senior and middle management teams, which have competitive experience levels; Well-designed training regimen; Sound technology environment, which recently underwent customer facing and analytical enhancements; Comprehensive internal control environment, which relies on multiple lines of defense to help oversee the servicing organization; Satisfactory quality control and internal audit report results, which included minimal higher-risk findings that have been or currently are being remediated; Well-designed complaint and vendor management

...+ A separate team was created to assist with change management and help the business implement action plans on identified issues. + Call monitoring is now handled only by internal staff. + More information security questions were added to the vendor questionnaire to validate that the vendors' security guidelines meet standards. + Quality control transitioned to a new vendor application. + Accounts affected by servicing transfer now receive additional information via the telephony system and email communications. + A chatbot was added in the customer service area. The ranking outlook is stable. LoanCare has improved its operational controls and efficiencies over the past 18 months, demonstrated competitive servicing metrics, and plans to implement further improvements over the next 12 months. We expect LoanCare to remain a proficient residential mortgage loan prime servicer. We could revise and raise our subranking on LoanCare during the next review cycle if the company's qualitative and...

Full Report