American Home Mortgage Servicing Inc., the company assembled by the billionaire Wilbur Ross, has bookkeeping problems that may hurt bond investors, Moody's Investors Service said, potentially including ones who borrowed from the Federal Reserve.

The Coppell, Texas, servicer has been slow to reconcile numerous items in custodial bank statements with its accounting records, citing "inconsistencies" between two technology systems, the rating firm said March 19. "Although reconciliation items are not uncommon in the mortgage servicing industry, servicers will typically resolve such items within 30 days of being identified," which hasn't been the case with American Home, Moody's analysts Navneet Agarwal and Zhiqin Huang wrote. They wrote that "there is a significant amount of aged" — 60 days or more — "reconciliation items" at American Home.

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