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66 LENDER/SERVICER PROFILE PNC REGIONAL Source: Standard & Poor's Servicer Evaluation (11/13/2013) Take a look inside the numbers S T A T E S S E R V I C E D * KEY TECHNOLOGY Loan servicing system: LPS Loan Processing Systems SWOT STATEMENT (Strength, Weakness, Opportunity, Threat): According to Standard & Poor's most recent Servicer Evaluation, PNC's strengths include: » Proactive in implementing major changes to its operations to adjust for a changing mortgage servicing environment including meeting the Consumer Finance Protection Board (CFPB) rules; » Significant improvement in telephone numbers, such as average speed of answer (ASA) in customer service, loss mitigation, and collection, resulting in a more positive borrower experience; » Collectors are now encouraged to ask for a payment at the beginning of the call, which increases collections; and » PNC has made significant efforts to have borrowers make payments electronically (over 50% now do so). Standard & Poor's lists PNC's weakness as: » Material findings during the review period in audit, QC, and REG AB, primarily focused on controls and policies and procedures that need to be enhanced to meet new regulatory standards. COMPANY VITALS Headquarters: Pittsburgh, Pennsylvania Phone: 888.762.2265 Online: PNC.com PNC sprang up in 1983, when Pittsburgh National Bank and Provident National Corporation—two firms with extensive histories dating back to the 19th century—came together in what was at the time the largest bank merger in the country's history. Through several other acquisitions, the bank spread throughout the region. Today, PNC has a nationwide network of 90 retail mortgage offices and 2,700 retail banking branches in the continental United States. As of December 2013, the bank puts its loan portfolio at $114 billion, making it one of the top originators and servicers nationally. COMPANY'S LATEST January 16, 2014 PNC Financial Profit Rises on Loan Growth, Improved Credit Quality PNC Financial Services Group Inc.'s (PNC -1.97% ) fourth-quarter earnings rose 46% as improved credit quality and growth in loans continued to boost the company's bottom line. The Pittsburgh bank reported a profit of $1.05 billion, up from $718 million a year earlier. On a per-share basis, which reflects the payment of preferred dividends, earnings rose to $1.85 from $1.24 a share. PNC's loan portfolio grew 5% from a year earlier to $195.6 billion, driven by an 8% jump in commercial loans. The company expects "modest growth" in loans the first quarter, [CFO Robert] Reilly said. - The Wall Street Journal December 09, 2013 GSE Reaches Settlement with PNC PNC Financial Services Group and Freddie Mac announced that they reached an agreement in principle to resolve substantially all indemnification and repurchase obligations related to loans sold to Freddie Mac between 2000 and 2008. According to the agreement, PNC Bank will pay Freddie Mac a total of $89 million—minus a credit of $8 million—to resolve certain existing and future repurchase obligations related to approximately 900,000 loans originated and sold to Freddie Mac primarily between 2000 and 2008. The intention of the decisions is to compensate Freddie Mac for certain past losses and potential future losses relating to denials, rescissions, and cancellations of mortgage insurance. This agreement follows the previously announced agreement in principle that PNC reached with Fannie Mae to resolve repurchase demands with respect to loans sold between 2000 and 2008. - TheMReport.com SERVICER RATINGS Fitch Ratings: Long Term Issuer Default Rating >> A+; Short Term Issuer Default Rating >> F1 Standard & Poor's: Local Long Term Issuer Rating >> A-; Outlook Stable KEY PERSONNEL James E. Rohr Executive Chairman William S. Demchak President and CEO Robert Q. Reilly CFO Todd Chamberlain CEO, PNC Mortgage Staffing » Servicing staff (as of June 30, 2013): 1,762 » Staff experience (averages): » Senior managers: 32 years' industry experience, 14 years' tenure » Middle mangers: 14 years' industry experience, 11 years' tenure » Total annualized turnover: 8 percent for managers and 15 percent for staff » Servicing Sites: Primary servicing locations in Miamisburg, Ohio and Jacksonville, Forida » Branch offices: 2,500 throughout the U.S. SERVICING SUMMARY Loan Portfolio (As of June 2013) » PNC serviced a portfolio of approx. 825,000 loans » UPB: Approx $120 billion REO Data » Average inventory turnaround time: 244 days » Average net sale to market value: 94 percent » Average gross sales-to-market value: 104 percent » Average time to market an asset from post-eviction to closing: 200 days » Average REO portfolio sold monthly: 13 percent » Overall loss severity rate: 44 percent KNOW THIS Fannie Mae ranked PNC among its top STAR servicers for the first half of 2013 based on the bank's customer service and foreclosure prevention efforts. Illinois, Washington, Massachusetts, Ohio