Mortgage Daily Logo

Customer Service Leads to MetLife Downgrade

Mortgage News

MetLife Inc.’s mortgage servicing unit had its rating downgraded because of insufficient staffing in customer service. The operation can’t add new office space quickly enough to accommodate the needed growth. Improvement has been noted, however, in the company’s collections department.

MetLife Home Loan’s servicer quality rating was cut to SQ3+ from SQ2-. The downgrade impacts MetLife’s rating for servicing prime mortgages.

The action came Friday from Moody’s Investors Service.

Ratings from Moody’s range from SQ1+, the best assessment available, to the worst possible rating of SQ5-.

Moody’s said that MetLife’s collection abilities, loss-mitigation results, and foreclosure and REO timeline management are all average. Stability assessment is rated above average.

The downgrade reflects deterioration in call-center metrics for its customer service department. Moody’s attributed the deterioration to insufficient staffing.

“Abandonment rates in 2010 reached 30 percent for customer service, performance levels that are significantly worse than its peers,” the ratings agency said in a statement.

Moody’s noted, however, improvement since October 2010 in MetLife’s foreclosure tracking and monitoring process, which has been brought in-house. Its document execution process has also improved, with a quality control review of affidavits being implemented.

Another ongoing concern in customer service operations is a constraint on physical space. The lack of available space has 45 percent of the company’s customer service representatives working from home. MetLife allows the work-from-home arrangement after an employee has been on board for at least 90 days.

Moody’s did note that the servicer has made an effort to increase its Dallas-area office space. However, office build out won’t be completed until next year.

But the abandonment rate and time to answer calls in the collections department “were significantly improved from last year.”

MetLife has recruited new leaders from outside the company for its collections department, a move that has benefited the unit.

MetLife reported its total mortgage servicing portfolio at 618,900 loans for $116.796 billion as of June 30.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam