Fitch Ratings has affirmed the following U.S. residential mortgage servicer rating of Statebridge Company, LLC’s (Statebridge) sub-servicer mortgage operations:

–U.S. residential primary specialty-subservicer rating at ‘RPS3’; Outlook Stable.

The rating affirmation and Stable Outlook are based on Statebridge’s effectively-managed growth strategy, experienced management team, and continued investment in systems, facilities, technology, and staff. In addition, the rating takes into consideration the financial support of its parent, FrontRange Capital Partners, LLC, a private equity firm, which continues to fully support its strategic growth objectives.

As part of its growth objectives, the servicer increased the number of positions at its Greenwood Village location by 40 full time equivalents and is in the process of finalizing plans to open a second location in Portland, OR during the third quarter of 2016. The servicer also completed several enhancements to its information technology systems and processes, implemented a new vendor monitoring system and established its vendor management committee.

During this review period, Statebridge added an additional layer of managers to its management team. The additions enhance the servicer’s bench strength and help facilitate Statebridge’s succession planning objectives. The servicer added two vice presidents and one manager into its loan administration operations, one vice president into default operations, and one vice president and one manager to its technology and systems area.

Statebridge maintains a very experienced senior management team averaging over 27 years industry and seven years company tenure.

The servicer also hired a new compliance manager and implemented its new compliance management system. In addition, Statebridge hired a business development manager to spearhead its growth and loan diversification plans. The servicer indicated that it plans to add more agency/performing loans to its portfolio while strengthening its subservicing capabilities.

As of June 30, 2016, Statebridge has increased its sub-servicing portfolio to approximately 17,700 for approximately $2.6 billion from 11,500 loans totaling $1.6 billion since the prior year’s review. Corresponding staffing also increased to 115 from 87 for the same period under review.

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

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch’s residential servicer rating program, please see Fitch’s report ‘Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria’, dated April 23, 2015, which is available at ‘www.fitchratings.com‘.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria

Rating Criteria for U.S. Residential and Small Balance Commercial Mortgage Servicers (pub. 23 Apr 2015)

https://www.fitchratings.com/site/re/864368

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Statebridge ”), a leader in residential mortgage servicing, announced today that it has hired four key executives as part of its growth strategy. The four executives are:

  •  Garrett Groman – VP of Servicing & IT Operations
  •  Jami Ignaz – VP of Investor Accounting and Investor Reporting
  •  Aaron Kehn – VP of Borrower Facing Operations
  •  Alicia Seitz – VP of Non Borrower Facing Operations and Performing Loan Servicing

The new executive team will be responsible for both the continuation of Statebridge’s special servicing business and its diversification into agency servicing.

Each member of the executive team has extensive experience in the servicing industry and brings a passion for leadership and excellence in their respective areas.

“It is exciting to be in a position to attract such talent” said Kevin Kanouff, CEO of Statebridge. “It is the natural evolution of a company like Statebridge to add senior talent to work with Jay to take us to the next level” said Kanouff.

Statebridge’s President and Chief Operations Officer, Jay Memmott said about the new hires: “I’m so excited to see that Garrett, Aaron, Alicia, and Jami have made individual decisions to join Statebridge. With their skills and industry experience there is no limit to what we can achieve as a united leadership team.”

Since its founding in 2008, Statebridge has been one of the fastest growing special servicers in the industry. Statebridge management plans to build on that success by diversifying its servicing offerings to include GSE-backed loans.

Fitch Ratings has assigned the following U.S. residential mortgage servicer rating to Statebridge Company, LLC’s (Statebridge) sub-servicer mortgage operations:

–Initial U.S. residential primary specialty-subservicer rating ‘RPS3-‘; Outlook Stable.

Statebridge was established in 2008 and is majority-owned by FrontRange Capital Partners, LLC (FrontRange), a private equity firm. Other key owners are Kevin Kanouff, chief executive officer and David McDonnell, managing director. In addition, on June 23, 2014, Jay Memmott, with over 35 years of industry experience joined the company as the new president and chief operating officer. FrontRange acquired a majority interest in Statebridge during the third quarter of 2013, after the prior joint business arrangement with Integrated Asset Services (IAS), a portfolio company of MBH Holdings ended.

Fitch assigned the specialty subservicer rating based on Statebridge’s evidenced servicing capabilities. Also, Fitch believes that Statebridge has an experienced senior management team, developed recruiting, staffing, and retention programs, and developed loan and default administration capabilities. The rating also takes into consideration Statebridge’s financial and business support from its parent company. In addition, the rating also considers Statebridge’s limited operating history, recent change in ownership, and current portfolio size.

As of June 30, 2014, Statebridge sub-serviced 5,675 loans for approximately $1.08 billion. The servicer recently completed several strategic arrangements and is expanding its operation. The company anticipates that its portfolio will increase to 10,000 loans by year-end 2014.

Fitch’s on-site observations are that Statebridge maintains an experienced servicing staff which is adequate for the size and type of portfolio currently being serviced. The servicer utilizes both vendor provided and its customized systems to adequately manage its portfolio. As of July 1, 2014, the servicer had 63 full time equivalents.

Fitch will continue to monitor Statebridge’s expansion and success in growing its mortgage servicing operations.

Statebridge, a leader in residential mortgage special servicing, announced today that it has hired Jay Memmott to be its President and Chief Operating Officer.

On June 17, 2014, Statebridge announced that it has hired former Seterus President, Jay Memmott to serve as its President and Chief Operating Officer. Prior to joining Statebridge, Jay Memmott was President of Seterus from 2010 to 2014 and was Chairman and Managing Director of Wilshire Credit Corporation from 2000 to 2010. Jay Memmott has served over 32 years in the mortgage finance/servicing industry.

”I have admired Jay’s work at Seterus and Wilshire for many years,” said Kevin Kanouff, CEO of Statebridge. “Bringing on an industry veteran like Jay, who successfully transitioned special servicer Wilshire into an industry leader in servicing GSE loans, allows us to accelerate our plans to be an even better special servicer and to diversify our business model into servicing performing and conforming loans,” said Kanouff.

“I’m very excited about joining Kevin and his team at Statebridge. The team collectively has built a great servicing platform and are perfectly positioned to take their business to the next level of success. As such, I want to be part of that team and that journey. It’s going to be fun.” said Memmott.

Since its founding in 2008, Statebridge has been one of the fastest growing special servicers in the industry. Statebridge management plans to build on that success by diversifying its servicing offerings to include GSE-backed loans.

Statebridge, a leader in residential mortgage special servicing, announced today that it has hired Brad Young as its Director of Business Development. Mr. Young will be responsible for implementing the business development strategy for the continued growth of the company.

Brad Young has served over 25 years in the mortgage finance/servicing industry. Prior to joining Statebridge Brad served in senior business development roles with several firms in the mortgage industry including GMAC Rescap, Homeward Residential and Castle Peak Capital Advisors.

“Brad’s experience and deep network of contacts will serve us well as we continue to expand” said Kevin Kanouff, CEO of Statebridge. “Bringing on an industry veteran like Brad, who has successfully expanded special servicing and agency servicing platforms will help us to grow not only our special servicing platform but also our move into traditional agency servicing” said Kanouff.

Statebridge’s new President and Chief Operations Officer, Jay Memmott said about Brad’s hire: “It is exciting to have Brad join the team. When I joined Statebridge a few months ago, it was with the vision of taking Statebridge to the next level of servicing. Having Brad on the team is another very important step in that direction.”

Since its founding in 2008, Statebridge has been one of the fastest growing special servicers in the industry. Statebridge management plans to build on that success by diversifying its servicing offerings to include GSE-backed loans.

Statebridge Company, LLC (“Statebridge”), a leader in residential mortgage special servicing, announced today that FrontRange Capital Partners, LLC (“FrontRange”), headquartered in Denver, CO, has entered into an agreement to make a strategic investment in Statebridge. The size of the investment was not disclosed.

Proceeds from the FrontRange investment will be used by Statebridge to:

  • Repurchase 100% of Integrated Asset Services’ current ownership interest in Statebridge;
  • Further strengthen Statebridge’s balance sheet in order to qualify for Fannie Mae and Freddie Mac (“GSE”) servicing; and
  • Upgrade its operating platform through investments in personnel and technology.

Since its founding in 2008, Statebridge has been one of the fastest growing special servicers in the industry. Statebridge management plans to build on that success by diversifying its servicing offerings to include GSE-backed loans.

“In a relatively short period of time, we have built one of the leading special servicers in the industry,” said Kevin Kanouff, President and CEO of Statebridge. “With this investment from FrontRange, we plan to accelerate that growth by making strategic investments in our people and systems, as well as becoming a GSE servicer.”

”We have known the Statebridge principals for many years and have been impressed by their proven ability to build an exceptional team and platform,” said David Robertson, CEO of FrontRange. “Management continues to own a significant stake in Statebridge, and we look forward to partnering with them to invest in the growth of the business.”

About FrontRange

FrontRange Capital Partners, LLC (“FrontRange”) is a private equity firm focused on investments in real estate and high growth, high cash flow businesses. Founded in 2010 in partnership with the Pritzker Group and led by David Robertson, Lance Graber and Glenn Robson, FrontRange invests capital on behalf of institutions and high net worth individuals. For more on FrontRange, please visit www.frontrangecap.com.