Moody’s Investors Services has downgraded the servicer quality (SQ) ratings of JPMorgan Chase and Chase Home Finance. The collective ratings in question are as primary servicer of prime residential mortgage loans from ' SQ1 ' to ' SQ2 ’, and as primary servicer of subprime residential mortgage loans from SQ1 to SQ2. Both will remain on review for possible further downgrade.
A Moody’s press releases stated that the basis of the downgrades were the deterioration of both the company’s collection metrics as well as foreclosure timeline metrics relative to its peers. Another major consideration was the “ongoing operational challenges associated with the regulatory environment”.