Moody’s Investors Service has separately placed some servicer ratings of Wells Fargo Bank N.A. and IndyMac Mortgage Servicers on review for possible downgrade, citing actions related to foreclosure affidavits.
The rating agency said its rating actions are specifically linked to Wells’ decision to submit supplemental affidavits for 55,000 foreclosures and IndyMac’s process of re-verifying affidavits for foreclosures.
The rating agency cited common concerns at IndyMac that have arisen in the recent so-called foreclosure crisis, namely that employees signing affidavits may not have had full personal knowledge of every item in the affidavits and notaries might not have been physically present at the time of signing.
Moody’s said in both cases that it is concerned about potential foreclosure process delays, as well as the possibility that potential irregularities in that process could result in legal challenges.
On Moody’s scale from SQ1 to SQ5 in which the former is considered strong and the latter is considered weak, Wells has an SQ1 rating as a primary servicer of prime or subprime residential mortgages. IndyMac has an SQ3 rating as a primary servicer of prime residential loans and SQ3-minus ratings as a primary servicer of subprime residential mortgages and as a special servicer of residential loans.
Wells’ goal is to complete its submission of supplemental affidavits by mid-November, Moody’s noted.
Wells earlier this week identified instances where a final step in its processes relating to the execution of the affidavits—including some aspects of the notarization process—did not strictly adhere to required procedures.
