We reduced our assessment of JPMMAC's credit risk management from Above Average to Average. Monthly testing is not conducted on loans using CU and AVMs to track the emergence of accuracy issues related to the data quality or model calibration issues. JPMMAC's credit risk management process is bolstered by solid analytics and technology to help manage and mitigate risk.
We assess JPMMAC's sales and marketing as Above Average. JPMMAC has significant pre-existing relationships with its sellers but also lower incentive to pursue sellers with the strongest credit standards compared to peers.
Our assessment for JPMMAC's financial strength continues to be Strong based on the financial strength and stability of Chase's parent company J.P. Morgan Chase & Co., a diversified bank with solid capital levels.
JPMMAC's management strength and staff quality continues to be assessed as Average due to JPMMAC's experienced management and low turnover. JPMMAC has few dedicated underwriters, appraisers and quality control personnel on staff. JPMMAC has expanded its training program since our previous review.
We continue to assess JPMMAC's oversight as Average. Numerous internal and external audits are conducted by the parent company and third-party due diligence firms are actively monitored.
JPMMAC's technology continues to be assessed as Strong. JPMMAC has a sophisticated aggregation platform where underwriting guidelines are programmed directly into their LOS in addition to a strong business resiliency program.
The framework used in this analysis was "Originator Assessments for Residential Mortgage Loans" published in December 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1122178. Alternatively, please see the Framework list at https://www.moodys.com/research/List-of-NCRA-Frameworks--PBC_1178235 for a copy of this framework.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Lima Ekram Vice President - Senior Analyst Structured Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 William Fricke VP - Senior Credit Officer Structured Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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