Overall, the report reveals that Caliber's portfolio has experienced relatively high growth over the past three years, "primarily from acquisitions and origination of performing GSE and government loans." Additionally, Caliber's performance metrics have remained strong and the platform operated within an acceptable range for Fitch's rating.
As of September 30, 2017, Caliber Home Loans has serviced 591,222 loans with an unpaid principal balance of $129 billion. By loan count, the portfolio is 54 percent agency conforming loans, 28 percent Department of Housing and Urban Development (HUD) loans, 14 percent subprime loans, and 5 percent other loan options, according to the report.
Taking into consideration Caliber's overall mortgage platform—and the alleged "ongoing regulatory scrutiny of the servicer," the report notes, Fitch rates residential mortgage primary, master, and special servicers on a scale of one to five, with one being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating.
Fitch Ratings servicer ratings and outlook reports:
- Residential primary servicer rating for Prime product at 'RPS2-'; Outlook Negative;
- Residential primary servicer rating for Subprime product at 'RPS2-'; Outlook Negative;
- Residential special servicer rating at 'RSS2-'; Outlook Negative.
Additionally, according to Fitch, Caliber is currently undergoing independent reviews with various regulatory bodies, according to the report, and “management indicated to Fitch that they are fully cooperating with each investigation.” As the financial condition is a component of Fitch's servicer rating analysis—the ratings also account the financial condition of Caliber and its parent, neither rated by Fitch.