Citigroup Inc’s mortgage banking subsidiary saw its servicer rating upgraded for subprime mortgages.
The subprime servicer quality rating for CitiMortgage Inc. was raised to SQ2 from SQ2- by Moody’s Investors Service.
The best possible rating is SQ1+, and the worst possible rating is SQ5-.
Moody’s noted “solid” performance at the servicer’s call center based on customer service and collections. Outbound collection calls are prioritized through a proprietary behavioral scoring model.
Loss mitigation assessments, servicing stability and foreclosure and REO timeline management ability were all rated above average. Moody’s also cited CitiMortgage’s above average collection abilities.
The incentive compensation program has been redesigned to motivate targeted performance, the ratings agency said.
Additionally, CitiMortgage’s servicer rating for prime loans was affirmed by Moody’s at SQ1-.
The total primary servicing portfolio, including prime and nonprime loans, was 4,445,831 mortgages for $645 billion.
