A downgrade has hit the servicer rating of Citigroup Inc.’s mortgage banking unit as its performance has weakened relative to its peers.
The residential mortgage servicer quality assessment for CitiMortgage Inc. on prime home loans has been downgraded to SQ2.
Mortgage servicer quality ratings range from the best possible rating of SQ1+ to the lowest available rating of SQ5-.
In CitiMortgage’s case, the rating was lowered from SQ2+.
Moody’s Investors Service was the ratings agency that issued the downgrade.
“The assessment downgrade is caused by a decrease in CitiMortgage’s performance relative to peers, particularly in the prime collection roll rates and percentage of short sales,” Moody’s explained in the notice.
Still, despite the downgrade, Moody’s noted that O’Fallon, Mo.-based CitiMortgage maintains solid call center metrics and has stronger performance on its modified loans than its peers.
Citigroup previously reported a
$172 billion third-party residential servicing portfolio within its consumer banking division as of Dec. 31, 2014.
