Moody's to review IndyMac's servicer rating on foreclosure questions
Moody's Investors Service placed IndyMac Mortgage Services rating up for review as its foreclosure process raised concerns. The credit rating agency is reviewing the servicer rating of Bank of America (BAC), JPMorgan Chase (JPM), Ally Financial (GJM) after those companies admitted employees signed foreclosure affidavits without a proper review of the documentation or a notary present. Moody's placed the Wells Fargo (WFC) rating up for review as well after the bank resubmitted 55,000 affidavits, too. IndyMac is in the process of resubmitting corrected affidavits as well, which could result in delayed foreclosure and REO timelines. Moody's scales the servicer quality ratings from SQ5 the lowest to SQ1, the highest. IndyMac's rating is currently at SQ3 for prime and subprime residential loans. Moody's said it already views IndyMac's servicer stability as below average because of its ownership structure. According to the agency, IndyMac is owned by OneWest Bank, which is owned by IMB HoldCo, a collection of private equity investors. As of June 2010, IndyMac's servicing portfolio contained more than 565,000 mortgage loans with an unpaid principal balance of $133.5 billion. Write to Jon Prior.