The mortgage servicer rating of U.S. Bancorp’s home lending unit could be downgraded because of deterioration in its default performance metrics.
U.S. Bank Home Mortgage currently maintains a servicer quality assessment of SQ2- as a primary servicer of prime mortgages.
Mortgage servicer ratings range from the highest possible rating of SQ1+ to the worst possible rating of SQ5-.
Moody’s Investors Service assigned the current rating in November 2012.
An announcement Monday from Moody’s indicated that the rating has been placed on review for a possible downgrade.
“The review for downgrade is based on a deterioration in U.S. Bank’s default performance metrics compared to peers,” the New York-based ratings agency explained. “We lowered the company’s component assessment for collections to average from above average.”
Minneapolis-based U.S. Bancorp previously reported a third-party residential loan servicing portfolio of $225 billion as of Sept. 30.
