In the wake of an internal consolidation, Fitch has affirmed Bank of America NA’s primary residential mortgage servicer rating for prime-credit loans, but downgraded slightly its primary servicer ratings for alternative-A credit loans and home equity lines of credit.
On a scale of 1 to 5 on which 1 is the highest rating, Fitch affirmed the prime servicing rating at RPS1- while lowering the alt-A and HELOC ratings to RPS2+ from RPS1-.
Fitch said the rating actions are based on the consolidation of Bank of America NA’s mortgage servicing operations into its BAC Home Loans Servicing LP subsidiary as well as other rating criteria.
It also noted that all its U.S. residential mortgage servicer ratings continue to have a negative outlook due to continuing heightened concerns around alleged procedural defects in the judicial foreclosure process. However, it also noted that so far its survey of servicers’ internal procedures used to verify and execute foreclosure affidavits indicates they are taking that matter seriously and are continuing to work to resolve any issues they uncover.
