JPMorgan Chase Bank, N.A. -- Moody's affirms JPMorgan Chase's SQ assessments
Announcement - Servicer: Moody's affirms JPMorgan Chase's SQ assessments
Global Credit Research - 12 Jan 2021
U.S. Residential Mortgage Servicer Assessment Action
New York, January 12, 2021 -- Moody's Investors Service ("Moody's") has affirmed the servicer quality (SQ) assessments for JPMorgan Chase Bank N.A.'s ("Chase") at SQ2+ as a servicer of prime residential mortgage loans and SQ2 as a subprime servicer. We also affirmed Chase's servicer quality assessment of SQ2+ as a master servicer.
ASSESSMENT RATIONALE
We view Chase's collection abilities as above average. The company's collection performance metrics were above average for the review period when compared to peers. Although call center metrics for the company were stressed in March and April 2020 due to the COVID-19 pandemic, the metrics normalized during subsequent months.
We assess Chase's loss mitigation abilities as above average. The performance of loans with modifications were strong compared to peers. For borrowers affected by COVID-19, Chase provided self-service options (website and IVR) for customers seeking payment assistance.
We view Chase's foreclosure and REO timeline management as average. During the review period, loans in foreclosure and REO were placed on hold to comply with investor and regulatory COVID-19 moratoriums. Chase implemented new bankruptcy processes for COVID-19 forbearance notices.
We assess Chase's loan administration function as above average. This component assessment is based on above average payment processing, loan boarding and document management practices. During the review period, Chase implemented COVID-19 investor reporting requirements.
We view the company's servicing stability as strong. JPMorgan Chase Bank, N.A. long term deposit rating is Aa1. Chase maintains an experienced management team and robust technology infrastructure. In response to the COVID-19 pandemic, the company successfully transitioned the majority of servicing employees (90%) to a remote working environment. In addition, the company has a comprehensive compliance, governance and risk management framework.
The master servicing assessment is based on strong reporting & remitting capabilities, above average compliance and monitoring abilities and above average servicing stability. The company uses the SBO2000 master servicing system and continues to invest in system upgrades and customization.
The framework used in this analysis was "Servicer Quality Assessments for Servicers of Residential Mortgages" published in December 2019 and available at https://www.moodys.com/viewresearchdoc.aspx?docid=PBS_1122183. Alternatively, please see the Framework list at https://www.moodys.com/research/List-of-NCRA-Frameworks--PBC_1178235 for a copy of this framework.
Please see www.moodys.com for any updates on changes to the lead analyst and to the Moody's legal entity that has issued the rating.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Francis Wissman Vice President - Senior Analyst Structured Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 William Fricke VP - Senior Credit Officer Structured Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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