Servicer Evaluation: Newrez LLC

S&P Global Ratings' ranking on Newrez LLC (Newrez) is AVERAGE as a residential mortgage loan master servicer. On Aug. 28, 2024, we assigned the ranking (please see "Newrez LLC AVERAGE Residential Mortgage Loan Master Servicer Ranking Assigned; Ranking Outlook Stable," published Aug. 28, 2024). As part of the ranking action, we assigned our management and organization subranking as AVERAGE and our loan administration subranking as AVERAGE. The ranking outlook is stable. Our ranking reflects Newrez's: Experienced leadership team, with considerable master servicing experience and industry knowledge; Seasoned technology, internal audit, and human resource services provided by Rithm Capital Corp. (Rithm) and Newrez; Reporting structure (i.e., master servicing reports to the head of Newrez's primary servicing), which could be viewed as

...duties required of a master servicer; however, there has been limited seasoning and testing of its processes, which will be required to prove effectiveness. A material change in the size or composition of its servicing portfolio may affect our current ranking or ranking outlook, and we will take ranking actions as we deem appropriate. In addition to conducting an onsite meeting with servicing management, our review includes current and historical Servicer Evaluation Analytical Methodology data through June 30, 2024, as well as other supporting documentation provided by the company....

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