OREANDA-NEWS. Fitch Ratings has initiated coverage of Seneca Mortgage Servicing, LLC (Seneca) and has assigned the following U.S. residential mortgage servicer ratings.

--U.S. Primary servicer rating for prime product 'RPS3'; Outlook Stable;
--U.S. Primary Special servicer rating 'RSS3'; Outlook Stable;

The rating assignments and Stable Outlook are based on Seneca's developed servicing platform, experienced management team, financial support and oversight by the parent company, and its staffing and retention practices. Additionally, the ratings take into consideration the servicer's enterprise risk management practices and its systems and technology capabilities.

Seneca f/k/a AMS Servicing LLC (AMS) was established in 2008 as a special servicer of residential and small balance commercial mortgages. In February 2014, Seneca Mortgage Investments LP (SMI), a real estate investment company that invests in mortgage servicing rights (MSRs), acquired AMS, from Arbor Commercial Mortgage, LLC. The acquisition was completed as a joint venture among affiliates of GSO Capital Partners LP; EJF Capital, LLC, and Arbor Residential Mortgage.

The servicer operates its mortgage loan servicing business from Elma, New York and its corporate functions are performed in Manhattan, New York. As of May 31, 2015, Seneca primary serviced 183,611 loans for $42.5 billion and special serviced 7,095 loans for $1.3 billion. On Dec. 31, 2014, Seneca primary serviced 111,972 loans for $25.4 billion and special serviced 5,875 loans for $940 million.

The servicer maintains a highly experienced management team averaging over 29 years industry experience and has successfully recruited various industry professionals to support its ongoing growth plans. Furthermore, Seneca has a highly developed internal control environment that includes effective internal audit, compliance, and quality control practices with strong oversight by senior management. In addition, the servicer uses third-party providers to enhance its internal audit and quality control processes.

Seneca maintains an integrated technology platform that supports its mortgage servicing operations. The servicer utilizes an industry standard mortgage servicing system, which provides capacity and growth potential for its business needs. During the current review period, the servicer experienced elevated levels for both average hold times and abandonment rates for its customer service and collections areas. The servicer indicated that it has implemented new technology enhancements and increased management oversight over these areas leading to improving trends in both customer service and collections.

Fitch will continue to monitor Seneca's ability to maintain its strategic growth objectives operating as a non-bank servicer in a highly regulated environment.