Ratings agency Fitch Ratings has designated Evolve Mortgage Services an “acceptable” third-party review (TPR) firm for loans included in the residential mortgage-backed securities (RMBS) that the agency rates.
With this latest designation, Evolve is now an “acceptable” TPR provider for all five major rating agencies – with the other four agencies being DBRS Morningstar, Kroll Bond Rating Agency, Moody's Investors Service, and S&P Global Ratings.
In a recent report, Fitch emphasized that third-party due diligence remains a key consideration in its RMBS rating process, especially in “stress scenarios such as the current coronavirus pandemic.”
“The economic impact of the COVID-19 pandemic was particularly disruptive to the non-agency mortgage market, resulting in widespread suspension of trade settlements and loan programs,” said Mark Hughes, managing director at Evolve. “During this pause in activity, market participants have had an opportunity to evaluate legacy processes and redesign their loan programs and vendor partnerships that are focused on supporting their growth. With the completion of our rating agency approvals, we are pleased to expand the pool of originators, aggregators, Issuers and underwriters that can benefit from our services.”
“Users of third-party reviews are tired of the old and afraid of ‘too new’ – they are seeking different options for TPR services,” said Paul Anselmo, chief executive officer of Evolve. “Our roots go back nearly three decades. With our long history and strong experience in due diligence, we look forward to shoring up capacity in this space.”