Bond credit rating agency Moody’s Investors Service Reaffirms “above average” rating for reverse mortgage servicing performance Celinkwhich is the current holder of U.S. Department of Housing and Urban Development (HUD)’s Home Equity Conversion Mortgage (HECM) servicing contract, a HECM sub-servicer of several major lenders.
Moody’s assessment of “SQ2” is based on Celink’s “above average” service capabilities and “average” service stability. SQ represents Moody’s view of a service provider’s ability to prevent or mitigate losses in its asset pool in changing markets. The assessment range is from SQ1 (strong) to SQ5 (weak).
“Celink has been under review by Moody’s since 2016; Celink noted in its rating announcement that it was initially rated SQ2- and was upgraded to SQ2 in 2021 and has remained at that level since then.” Moody’s highlighted Celink’s performance in France Strong performance in PA, REO and HUD claims management. “
The company explained that the “above average” determination applied to loan administration, call center performance, annual occupancy verification and expiration event monitoring.
Moody’s also assessed the company’s investment activity on its platform, noting that Celink continues to invest “in borrower experience and portfolio performance through Celink’s borrower portal and IVR system.”
Celink chief executive Marion McDougall welcomed Moody’s latest assessment.
“At Celink, we have always been and will continue to be focused on providing the best service to our customers, their borrowers and the entire reverse mortgage program,” McDougall said. “Moody’s ratings validate our emphasis on continuous improvement, ensuring the continued quality of our services and the supporting technology we build to achieve our mission.”
In 2023, Celink renewed subprime servicing agreements with major reverse mortgage lenders, including American Financial and Omaha Mortgage Mutual. It also adds aarti source Help manage its HECM product portfolio.
Celink took over the HECM service contract with HUD in late 2022.
