Evolve Mortgage Services has been designated as an “acceptable” third-party review (TPR) firm by Fitch Ratings for loans included in residential mortgage-backed securities (RMBS) that Fitch rates, the company announced in a release.
“Acceptable third-party review firms have demonstrated proficiency in due diligence, and have adequate processes and controls in place,” according to Evolve.
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.”
With the latest designation by Fitch, Evolve is now an “acceptable” TPR provider for all five major rating agencies.
“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,” Evolve Managing Director Mark Hughes said in the release. “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.”
Evolve’s management team and staff have vast expertise in loan level due diligence reviews to identify credit, compliance and valuation risk, as well as extensive knowledge of RMBS securitization best practices. The firm has a state-of-the art proprietary underwriting platform that is integrated with advanced technology to provide comprehensive due diligence on a variety of loan types, the company release said.
“Users of third-party reviews are tired of the old and afraid of ‘too new,’ ” Evolve CEO Paul Anseimo said. “They are seeking different options for TPR services. 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.”