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.
Moody’s reviews mortgage servicing methods at MetLife, Litton and Bayview
October 15, 2010, 10:45am
Christine was a reporter with HousingWire through August 2011.see full bio
Most Popular Articles
Latest Articles
From resilience to antifragility: Rethinking cybersecurity for real estate and mortgage professionals
In information security, we’ve long spoken about resilience. The goal has been to withstand an attack, recover quickly, and return to business as usual. But in today’s environment—where attackers adapt and evolve daily—resilience is no longer enough. We must go further. We must embrace antifragility.
-
From local to global: RE/MAX’s Chris Lim on the next era of real estate relationships
-
Stop marketing like it’s 2008: You’re invisible
-
RE/MAX accelerates real estate innovation with AI and technology
-
Retirement plans for small-business owners have visible generational gaps
-
VA loans rise as housing market shifts toward buyers
Christine was a reporter with HousingWire through August 2011.see full bio
