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Fitch Affirms Wells Fargo's Primary Resi Servicer Ratings; Assigns Stable Outlook

  Fitch Affirms Wells Fargo's Primary Resi Servicer Ratings; Assigns Stable
  Outlook

Business Wire

NEW YORK -- December 19, 2012

Fitch Ratings takes the following rating actions on the U.S. residential
primary servicer ratings for Wells Fargo Home Mortgage (WFHM), a division of
Wells Fargo Bank, N.A., and assigns them a Stable Rating Outlook:

--Residential primary servicer rating for Prime product affirmed at 'RPS1-'
Outlook Stable;

--Residential primary servicer rating for Alt-A product affirmed at 'RPS1-'
Outlook Stable;

--Residential primary servicer rating for Subprime product affirmed at 'RPS1-'
Outlook Stable.

WFHM's servicer ratings affirmation and assignment of a Stable Outlook reflect
the continued enhancements to operational risk and expanded procedural
controls that were implemented during the year. In addition, WFHM rolled out
new-hire training and annual certification programs for its single point of
contact representatives while developing management reports and measures for
the performance monitoring and incentive programs.

The ratings also reflect the ongoing realignment of various servicing
operations and continued internal promotions and key additions to the senior
management team.

In addition, the ratings reflect the financial strength of its ultimate
parent: Wells Fargo & Company (WFC), rated 'AA-' with a Stable Outlook by
Fitch.

WFHM is under signed Consent Orders with both the Federal Reserve and the
Office of the Comptroller of the Currency and the respective attorneys
general. The servicer continued making operational changes to adhere to the
new regulations through the various oversight agencies and attorneys' general
settlement. The servicer was one of five servicers to agree with the April
2012 settlement that saw the total sum of $25 billion set aside to provide
consumer relief, refinance, and foreclosure assistance programs. The programs
will remain in effect for three and a half years and will be subject to a
trailing review period.

Further, the rating reflects Fitch's overall continued concerns for the U.S.
residential servicing industry, which include the ability to maintain high
performance standards while addressing the rising cost of servicing and
changes to industry practices, which are likely to be further mandated by
regulators and other parties

WFHM is headquartered in Des Moines, IA operating eight servicing/customer
centers and nine specialized loss mitigation centers throughout the U.S. As of
Aug. 30, 2012, WFHM serviced 9,460,335 loans totaling $1.66 trillion,
including approximately 8.08 million agency loans totaling $1.33 trillion,
735,614 prime loans totaling $229 billion, 17,490 Alt-A loans totaling $4.6
billion and 109,976 subprime loans totaling $16.1 billion. In addition, WFHM
serviced 515,000 other loans comprised of manufactured housing (MH) and
community reinvestment act (CRA), third-party servicing and second liens
totaling $80.5 billion.

In June 2011, Fitch downgraded the operational risk ratings of several
residential mortgage servicers amidst the growing burden of managing
delinquent and defaulted mortgages in an environment of heightened regulatory
scrutiny. The increased areas of risk identified by various regulatory bodies
ultimately resulted in consent decrees and, the slower than expected pace that
institutions have demonstrated in responding to the foreclosure crisis and
implementing process changes. WFHM's primary servicer ratings were among those
downgraded.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings

Applicable Criteria and Related Research:

--'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer
Rating Criteria', dated Jan. 31, 2011.

Applicable Criteria and Related Research:

U.S. Residential and Small Balance Commercial Mortgage Servicer Rating
Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=600065

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contact:

Fitch Ratings
Primary Analyst
Michael Laidlaw, +1-212-908-0251
Director
One State Street Plaza
New York, N.Y. 10004
or
Secondary Analyst
Diane Pendley, +1-212-908-0777
Managing Director
or
Chairperson
Grant Bailey, +212-908-0544
Managing Director
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com
 
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