Moody's to review JPMorgan Chase servicer rating after foreclosure suspension
Moody's Investors Service placed the servicer rating of JPMorgan Chase (JPM) and its subsidiary Chase Home Finance up for review following the announcement of a foreclosure suspension linked to more affidavit problems. When Ally Financial, formerly GMAC Mortgage admitted employees signed foreclosure affidavits in 23 states without knowledge of the documents or a notary present, a process known as "robo-signing," Moody's placed the Ally servicer rating and affected residential mortgage-backed securities on review, too. "We've been in communication with the all the servicers subsequent of the GMAC news last week," Thomas Lemmon, a spokesman for Moody's, told HousingWire. Moody's rates servicers on a scale of SQ1 as the strongest, to SQ5 as weakest. Currently, the JPMorgan Bank primary servicer rating is at SQ1 on residential and subprime loans. Its primary servicing portfolio totaled roughly 6.8 million loans for an unpaid principal balance of roughly $1.2 trillion as of June 30. Moody's will assess delinquency transition rates, foreclosure timelines, loan cure rates, recoveries, loan resolution outcomes and REO management of both JPMorgan Chase and Ally. All factors are potentially affected by the foreclosure suspensions. Write to Jon Prior.