Paratus AMC, which is the business behind new buy-to-let lender Foundation Home Loans, has seen its UK Special Servicer Ratings upgraded from ‘RSS2’ to ‘RSS2+’ by Fitch Ratings.
Paratus AMC manages a mortgage book of over 27,000 loans with a value of £2.8 billion, most of which were securitised pre-2008 through the RMAC shelf.
According to Fitch, Paratus AMC offers a “good mixture of resolution methods, with a clear focus on individual borrower situation and affordability”.
Fitch also referenced the effectiveness of the senior management team at Paratus AMC, which has seen positive changes within the past 18 months, as well as the benefits of ongoing staff training and development. Another strength identified by Fitch was the high level of functionality offered by its bespoke servicing system.
Hans Geberbauer, chief executive officer of Paratus AMC and Foundation Home Loans, said: “We are delighted to have had our efforts in building an effective, customer centric servicing operation recognised. Since we took the servicing in-house in Q2 2011 and introduced our industry leading servicing software and incentivisation scheme, the arrears have reduced dramatically, and much faster than the industry average.
“As the Mortgage Market Index published by Fitch clearly shows, the RMAC securitisation shelf we manage has much lower arrears levels than most of its peers and the lowest cumulative loss rate of any non-conforming securitisation platform.
“More importantly, we have one of the lowest repossession rates, demonstrating our effectiveness in working with customers in a way that delivers the best achievable result for lender and borrower alike, and resorts to repossession only as a last resort.”