Report Explains How ESG Factors Into Servicer Evaluation Rankings

NEW YORK, Nov. 17, 2020 /PRNewswire/ -- FARMERS BRANCH (S&P Global Ratings) -- There has been a heightened awareness among company leadership teams, investors, and other market participants regarding the importance of environmental, social, and governance (ESG) factors when evaluating company risk and performance. Companies in the loan servicing industry are certainly no exception. In a report published yesterday, titled "Environmental, Social, And Governance Factors Have Consistently Powered Our Servicer Evaluation Rankings," S&P Global Ratings explains the role that ESG plays in its servicer evaluation assessments.

"We are seeing loan servicers place a renewed focus on--or, in some cases, a broader adoption of--practices to address ESG factors as they internally identify the benefits of investing in and further developing these areas," said S&P Global Ratings' servicer analyst Jason Riche. "This is especially so since the start of the COVID-19 pandemic, as servicers across the board implemented employee-focused initiatives to enable the vast majority of employees to work remotely for an extended period."

S&P Global Ratings' servicer evaluation rankings assess a servicer's business governance, management structure and experience, internal controls, and other operational and administrative practices in place to manage risk, while still driving operational performance. There are many factors that we consider in our assessment, some of which are components of ESG.

"ESG components are a significant element in our management and organization subranking and thus are an inherent part of our analysis," added Mr. Riche. "This is particularly the case in areas of governance, which is the most meaningful ESG component in our servicer assessments. Social factors can also have an indirect effect on performance and operational risk; as such, certain social practices factor into our analysis too."

This report does not constitute a rating action.

The report is available to subscribers of RatingsDirect at If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at Members of the media may request a copy of this report by contacting the media representative provided.

Copyright © 2020 by Standard & Poor's Financial Services LLC. All rights reserved.

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results  obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE

CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, (free of charge), and (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.

SOURCE S&P Global Ratings

For further information: SERVICER ANALYST Jason Riche, , Farmers Branch, + 1 (214) 468 3495, jason.riche, ANALYTICAL MANAGER; Robert J Radziul, New York, + 1 (212) 438 1051, robert.radziul, MEDIA CONTACT, Luke Shane, New York, + 1 (212) 438 1244, luke.shane