Moody's confirms US Bank prime SQ
Global rating agency Moody's has confirmed U.S. Bank Home Mortgage's Servicer Quality (SQ) assessment of 2- as a primary servicer of prime residential mortgage loans. The assessment is no longer on review for downgrade.
US Bank is active in the origination, purchase and sale of prime, government insured, and state housing agency residential mortgage loans. U.S. Banks servicing portfolio totaled approximately $ 258 billion in unpaid principal balance as of August 2012, reflecting moderate growth in the servicing portfolio.
The review for downgrade, initiated June 23, 2011 because of foreclosure document execution concerns, was concluded. U.S. Bank completed the review and remediation of their affidavits and foreclosure document execu- tion process, making significant changes as a result of their internal reviews and compliance with the OCC consent order.
Moody's prime servicer assessment is based on U.S. Bank's above average collection abilities, average loss mitigation results, average foreclosure and REO timeline management and strong servicing stability.
The collections category was upgraded to above average from average. The upgrade was mainly driven by positive roll rate performance results as compared to peers and improved call center metrics during the review period. For loss mitigation, the category assessment was lowered to average from above average due to U.S. Bank's lower volume of modifications and short sales in relation to other servicers.
U.S. Bank possesses strong servicing stability. U.S. Bank is a division of U.S. Bank, N.A., which is rated Aa2 for long term deposits. U.S. Bank, N.A. is a wholly-owned subsidiary of U.S. Bancorp rated Aa3 for senior unsecured debt. The ratings are on review for possible downgrade.
The previous assessment action for U.S. Bank SQ assessment occurred on June 23, 2011. At that time, we placed U.S. Bank's assessment as a primary servicer of prime loans on review for downgrade.
Global rating agency Moody's SQ assessments represent its view of a servicer's ability to prevent or mitigate asset pool losses across changing markets. The assessment scale ranges from SQ1 (strong) to SQ5 (weak). Where appropriate, a "+" or "-" modifier will be appended to the relevant assessment to indicate a servicer's relative servicing quality within a particular category.