On Thursday ratings and analytics agency ""Moody's Investors Service"":http://www.moodys.com/ yanked the mortgage servicer ratings for ""JPMorgan Chase"":https://www.chase.com/ and ""Chase Home Financing"":https://www.chase.com/ down, faulting the lending giant's mortgage collections metrics and operational difficulties occurring as a result of the Dodd-Frank Act.
[IMAGE] [COLUMN_BREAK]According to ""_The Wall Street Journal_"":http://online.wsj.com/home-page, ""Moody's"":http://www.moodys.com/ downgraded the values for prime and subprime residential mortgage loans, knocking it from SQ1 to SQ2 ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a considerable decline for a ratings index that runs on a five-level scale ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô and pledging to keep the bank on review for the near future.
""Moody's"":http://www.moodys.com/ said that ""Chase's"":https://www.chase.com/ servicing portfolio held nearly 8.3 million mortgages with $1.19 trillion in unpaid principal.
""_The Journal_"":http://online.wsj.com/home-page reported that ""Moody's"":http://www.moodys.com/ also dropped ""Chase's"":https://www.chase.com/ collections assessments, taking it from strong to above average. The ratings decline for ""Chase"":https://www.chase.com/ follows a similar action by ""Moody's"":http://www.moodys.com/ against ""Bank of America"":https://www.bankofamerica.com/ for a deteriorated portfolio.
According to its Web site, ""Moody's"":http://www.moodys.com/ rates mortgage servicers on the basis of their abilities to prevent or allay asset pool losses.