NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the following U.S. residential primary servicer ratings for Wells Fargo Home Mortgage (WFHM), a division of Wells Fargo Bank, N.A.,
--Residential primary servicer rating for Prime product at 'RPS1-' Outlook Stable;
--Residential primary servicer rating for Alt-A product at 'RPS1-' Outlook Stable;
--Residential primary servicer rating for Subprime product at 'RPS1-' Outlook Stable.
WFHM's servicer ratings affirmation and Stable Outlook reflect the servicer's strong and effective leadership capabilities, its successful structural realignment to meet its consent order requirements and the ongoing system and process enhancements being made throughout the platform. Additionally, WFHM indicated that it has successfully executed activities required under both the consumer relief (and state-level sub-committees) and the refinance programs in accordance with the terms of its obligations under the various settlement agreements with both Federal and State Agencies.
Under the agreements WFHM is providing additional assistance, such as loan modifications, to consumers and indicated that it is committed to continued foreclosure prevention actions which include first and second lien modifications and short sales/deeds-in-lieu of foreclosure on $1.2 billion of loans. The servicer indicated that it anticipates meeting this commitment by the Jan. 7, 2015 deadline.
In addition, the servicer increased its vendor oversight program to align with its internal audit standards and regulatory obligations. Fitch believes the changes will provide more effective performance monitoring over its third-party providers, especially over the more time-sensitive functions within default administration.
For the period under review WFHM had one material instance of non-compliance pertaining to its Reg AB reporting. The servicer indicated that the issue was self-reported and involved the action of one of its vendors. The servicer indicated that it has made the changes, completed all necessary testing and the issue was remedied.
The ratings also incorporate the financial strength of its ultimate parent Wells Fargo & Company (WFC), rated 'AA-' with a Stable Outlook by Fitch.
WFHM is headquartered in Des Moines, IA operating eight servicing/customer centers and four specialized loss mitigation centers throughout the U.S. The servicer previously operated nine centers but indicated that it consolidated its operation to focus on those states with the biggest home preservation concerns.
As of June 30, 2014, WFHM serviced 9,396,324 loans totaling $1.64 trillion, including approximately 8.1 million agency loans totaling $1.31 trillion, 781,724 prime loans totaling $240 billion, 12,211 Alt-A loans totaling $3.1 billion and 88,848 subprime loans totaling $12.2 billion.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Rating Criteria for Structured Finance Servicers' (January 2014);
--'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria' (January 2014).
Applicable Criteria and Related Research:
Rating Criteria for Structured Finance Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750
Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731747
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=902394
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