|An uncertain future for Accredited Home Lenders Inc.'s mortgage servicing platform was among the reasons behind a downgrade to the lender's subprime servicer rating.
Moody's Investors Service reduced the San Diego-based firm's servicer quality rating for subprime loans to SQ4-, a statement today said. The rating was cut from SQ4+.
Moody's rates servicers using a system where SQ1+ is the strongest rating and SQ5- is the weakest.
The downgrade was primarily attributed to a recent sale of mortgage servicing rights, a "rightsizing" of the servicing platform and a reduction of the servicing staff. An uncertain future for the platform was also cited.
In February, Moody's reported that Select Portfolio Servicing Inc. had acquired the servicing of Accredited Mortgage Loan Trust 2005-1 and 2005-4 as well as the servicing of Aames Mortgage Investment Trust 2005-4 and 2006-1.
Spokesman for both companies at the time of the acquisition didn't provide further details about the size of the transaction. A Moody's spokesman didn't immediately respond to a request today for more details.