Oakwood, which provides management of non-performing mortgages to third party administrators, has been awarded two specific ratings: a residential special servicer rating of ‘RSS2-UK’, which makes it the highest Fitch-ranked provider of outsourced special servicing in the UK; and a residential master servicer rating of ‘RMS2-UK’, which is the first time Fitch has ever assigned such a rating in Europe.
Fitch says it gave Oakwood the rating for “the high levels of industry experience of senior management and the innovative servicing strategies employed by the company”.
Oakwood chief executive Mike Culhane says: “This is a tremendous endorsement of the operations we have developed and refined over the last four years.
“We have a longer track record, more scale and greater experience than any other provider in the sector and our ratings underscore the fact that our proactive approach to servicing is highly relevant in today’s challenging environment. Arrears and repossessions are headline news and to achieve such a high rating is a testament to our special servicing team’s ability to manage cases effectively, sensitively and in compliance with ever changing legal and regulatory requirements.”
Oakwood says it is in further discussions with new mortgage book investors, such as hedge funds acquiring mortgage portfolios, as well as banks and building societies looking to improve their ability to service troubled assets, or investment banks managing out existing positions.
Culhane adds: “In many organisations Servicing has traditionally taken second place to new business origination. As the economy deteriorates, these organisations are being left with assets they are not equipped to manage.”