Outlook for Eight of JPMorgan Chase’s Servicing Ratings Improves

Fitch Ratings is removing from outlook negative six of JPMorgan Chase Bank’s residential primary servicer ratings for nonconforming loans and the bank’s residential master and special servicer ratings.

Improvements in the internal control environment, investments in servicing technology and improved internal audit and Reg AB results led to the ratings changes, according to Fitch.

“Chase has resolved most of the issues identified by internal audits at the time of Fitch's prior review, and audit reports for the current review period indicate a significant decrease in material findings,” the ratings agency said in a report Monday. “In addition, Fitch reviewed Chase's Reg AB reports which contained two instances of material noncompliance for the primary and special servicing operations, a decrease from four from the prior year.”

Fitch now has a stable outlook for Chase’s primary servicer ratings for prime, alt-A and subprime credit products, as well as for home equity line of credit, second lien and option ARM products.

All of Chase’s aforementioned residential primary servicer ratings are RPS2-plus, on a scale from one to five where one is the highest rating. Its special servicer rating is RSS2-plus and its master servicer rating is RMS2.

servicing, risk management, regulation, technology

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