OREANDA-NEWS. September 15, 2015.  Fitch Ratings has upgraded the following U.S. residential mortgage servicer rating for Statebridge Company, LLC's (Statebridge) sub-servicer mortgage operations:

--U.S. residential primary specialty-subservicer rating to 'RPS3' from 'RPS3-'; Outlook Stable.

Fitch Ratings has upgraded Statebridge's subservicer rating to 'RPS3' based on the servicer's evidenced capabilities as a mortgage servicer, its experienced senior management team, developed recruiting, staffing, and retention programs, and developed loan and default administration capabilities.

The rating actions also take into consideration Statebridge's successful execution of its key servicing objectives, effective risk management practices and the increased use of automated functionalities in its new loan boarding, vendor management, bankruptcy, and loss mitigation processes. Fitch believes the servicer maintains effective systems and processes to adequately manage its servicing functions.

The servicer has increased its sub-servicing portfolio to approximately 11,500 loans totaling \\$1.6 billion from 5,675 loans for \\$1.08 billion, since Fitch's initial rating in July 2014. Statebridge has increased full time equivalent positions to 87 from 55, and added senior management talent, which include a new corporate counsel, human resources, real estate owned (REO), foreclosure, and vendor oversight managers. Also, in October 2014, the servicer was approved as a Freddie Mac servicer and has indicated that it intends to add more performing loans to its servicing platform as part of its portfolio diversification plans.

Statebridge has expanded its operational capacity and completed the insourcing of its REO department and has a manager and support team in place. The servicer indicated that its majority-owned parent, FrontRange Capital Partners, LLC, a private equity firm, is dedicated to the growth of the servicing platform and has contributed to its system and process enhancements, staffing and capacity growth.

As of Aug. 31, 2015, Statebridge sub-serviced 11,496 loans for \\$1.6 billion. Statebridge is also in the process of boarding several flow transactions and indicated that it anticipates an additional 5,000 loans by year-end 2015.

Fitch will continue to monitor Statebridge's performance and effectiveness as it continues to grow its mortgage servicing operation.