Moody's reviews mortgage servicing methods at MetLife, Litton and Bayview
Moody's Investors Service placed the mortgage servicer ratings of MetLife Home Loans, Litton Loan Servicing and Bayview Loan Servicing on review for possible downgrade Thursday because of possible irregularities in their foreclosure processes, the credit rating agency said. MetLife Home Loans, a Texas-based subsidiary of MetLife, Inc., reportedly had employees robo-signing affidavits without knowledge of certain elements in the case -- allegations Moody's wants to check -- causing longer delayed foreclosures and longer REO timelines. Moody's said the firm has also temporarily suspended foreclosure sales in some states. MetLife could not be reached for comment. The parent company was downgraded previously in July. Moody's is also reviewing Litton Loan Servicing's foreclosure files because its process delayed foreclosures and extended REO timelines. Moody's said the firm has a "reputational risk" due to previously legal challenges brought against its foreclosure process. Litton, which is the mortgage-servicing unit of Goldman Sachs (GS), halted foreclosures "in certain cases" last week. Floridian servicing firm Bayview Loan Servicing also delayed foreclosures and extended REO timelines, according to Moody's. Although the firm has not suspended foreclosures, it is investigating possible timeline issues, as well as possible issues with document notarization. Bayview told the credit rating agency affidavits related to foreclosure matters were executed by a small number of senior individuals and were not part of an assembly process. Representatives for both Litton Loan Servicing and Bayview Loan Servicing were unreachable. Write to Christine Ricciardi. Disclosure: The author holds no relevant investments.