Fitch places HML’s servicer ratings on RWN

The sudden recent departure of Brian Brodie, chief executive officer, and Neil Warman, chief financial officer, at Homeloan Management Limited (HML) had led Fitch Ratings to put the firm’s servicer ratings on Rating Watch Negative (RWN).

Fitch has placed HML’s UK residential mortgage primary servicer ratings of 'RPS2+(subprime)' and 'RPS2+(prime)', and UK residential mortgage special servicer rating of 'RSS2-' on RWN.

Fitch notes the temporary management structure in place provides the business with a reduced layer of management and reduced breadth of experience, but average industry experience and company tenure among the executive team totals 15.7 and 6.5 years respectively - which remains on a par with rated peers.

Furthermore, Fitch's global servicing criteria incorporates the financial condition of mortgage servicers. Following the downgrade of its parent company, Skipton Building Society to 'BBB'/Negative from 'A-', Fitch has adjusted its scoring model to take this into account.

The RWN reflects the Negative Outlook placed on Skipton's Long term Issuer Default Rating, along with the current uncertainty regarding future executive team structuring and strategy of the servicing operation.