Servicer Evaluation: Selene Finance LP

S&P Global Ratings' rankings on Selene Finance LP (Selene) are ABOVE AVERAGE and AVERAGE as a residential mortgage loan special and primary (prime) servicer, respectively. On March 4, 2020, we affirmed the special servicer and prime servicer rankings (please see "Selene Finance LP Residential Special, Primary Servicer Rankings Affirmed; Special Servicer Outlook Lowered To Negative," published March 4, 2020). The outlook is negative as a special servicer and stable as a prime servicer. We lowered the outlook to negative from stable for the special servicer ranking due to prior ownership's suspension of the company's internal audit (IA) program for most of 2018 continuing through 2019. Management provided an explanation for the temporary discontinuation of the program and performed some limited

...months through the introduction of an enhanced analytics program in the first line of defense; + Well-designed complaint management processes and satisfactory vendor management program; + Enhanced loan-boarding processes; + Quantitative metrics that are generally competitive with the company's peer group, with the exception of reconveyance metrics that are not competitive with peers; + Sound default-management practices; + Customer service/collections abandonment rate that was higher than its peer group; + Quality control reports that reflected mainly satisfactory results, although there were some higher-risk findings in certain areas, which have since been resolved or are in the process of remediation; and + Suspension of its IA program in 2018 under prior ownership. Since our prior review (see "Servicer Evaluation: Selene Finance L.P.," published July 5, 2018), the following changes and/or developments have occurred: + The company was acquired by another entity, which is enhancing the...

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