OREANDA-NEWS. Fitch Ratings has affirmed the U. S. residential mortgage servicer rating of EverBank, FSA (EverBank) as follows:

--Residential primary servicer rating for Prime product at 'RPS3'; Outlook Stable.

EverBank is a subsidiary of EverBank Financial Corp and is a diversified financial services company, based in Jacksonville, FL, providing banking, mortgages and investment services. EverBank originates prime residential mortgage loans and focuses on jumbo prime mortgages.

The servicer rating affirmation and Stable Rating Outlook take into consideration EverBank satisfying its consent order requirements and subsequent removal from the OCC's agreement on Jan. 5, 2016, the completed strategic platform changes, and its enhanced risk management oversight and corporate governance program. The rating also takes into consideration EverBank's realignment efforts, which focuses on servicing its own originated loans, completing the transfer of the non-performing loans (NPL) and real estate owned (REO) portfolios while maintaining its default management effectiveness.

The servicer continued strengthening its risk management oversight and corporate governance program and instituted senior management oversight to its corporate governance and vendor risk management control processes. EverBank completed its Reg AB report for the period ended Dec. 31, 2015, with no material non-compliance issues.

As of March 31, 2016, EverBank's overall delinquency rate was approximately 2.00%, as compared to 12.00% in the fourth quarter 2014. This is due mostly to the transfer of approximately $15 billion of non-banking NPL and REO serviced loans to Green Tree and Nationstar. The servicer also expects to have an additional 4,400 loans transferred during the third quarter of 2016.

Everbank is focused on customers who have developed banking relationships that include other non-mortgage-related arrangements with the bank. In addition, the company has started growing its private banking-client relationships and has expanded its jumbo prime lending and loan retention programs. EverBank exited the wholesale origination market and expanded its home equity line of credit and jumbo hybrid-ARM and fixed-rate products while also expanding its retail and correspondent lending programs.

Fitch believes the realignment of EverBank's servicing platform coupled with the higher quality of new loan originations will materially improve the servicer's loan performance metrics. Fitch will continue to monitor EverBank's effectiveness in recruiting and retaining experienced personnel needed to perform all servicing functions.

EverBank is headquartered in Jacksonville, FL and has been servicing residential mortgage loans for over 54 years through predecessor name changes and acquired companies. The servicer has its primary operations located in Jacksonville, FL; with back-up capability in Islandia, NY. EverBank indicated that it does not offshore any servicing functions. As of March 31, 2016, EverBank serviced approximately 218,000 residential mortgage loans totaling $41 billion. This included approximately 160,600 agency loans totaling $25.2 billion, 8,800 non-agency RMBS prime loans totaling $2.2 billion, 26,600 owned-portfolio totaling $8.6 billion, and 22,100 third-party servicing loans totaling $5 billion.