Moody’s Review Suggests Affidavit Problems At IndyMac

Posted by Orb Staff on October 29, 2010 No Comments
Categories : Mortgage Servicing

Citing ‘potential irregularities’ in IndyMac Mortgage Services' foreclosure process, Moody's Investors Services has placed the Pasadena, Calif.-based servicers' prime, subprime and special-servicer ratings on review for possible downgrade. IndyMac is a division of OneWest Bank FSB.

Moody's notes concerns that IndyMac employees signing affidavits may not have had full personal knowledge of every item in the affidavit and that notaries may not always have been physically present at the time of signing.

Earlier this month, similar irregularities prompted Moody's to place on review the servicer ratings for MetLife Home Loans, Litton Loan Servicing and Bayview Loan Servicing.

IndyMac is in the process of submitting re-verified affidavits, which could result in delayed foreclosures in certain circumstances, Moody's explains.

The agency's review also considers that the potential irregularities in the foreclosure processes could result in legal challenges to previously completed foreclosures and reputational risk for the servicing operation and parent organization.

SOURCE: Moody's

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