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Fitch Reviews Proposed Servicing Transfer of Bank of America RMBS



  Fitch Reviews Proposed Servicing Transfer of Bank of America RMBS

Business Wire

NEW YORK -- July 1, 2013

Fitch Ratings has reviewed a request to confirm RMBS ratings in connection
with the mortgage servicing rights (MSR) transfer from Bank of America, N.A.
(BANA) to Nationstar Mortgage LLC (Nationstar). The transfers will occur over
a three month period beginning July 1, 2013. The subsequent transfers are
anticipated to occur July 16, Sept. 1 and Sept. 16.

After reviewing the proposed transfer, Fitch does not expect negative rating
actions on any Fitch-rated classes as a result of the transfer. However, Fitch
notes that this does not preclude the possibility that future rating actions
may be taken due to rating criteria or future performance considerations.

Fitch intends to provide rating confirmation letters for all 83 Fitch-rated
transactions being requested. Fitch will also provide the transaction names in
accordance with the scheduled transfer dates.

The transactions reviewed were initially issued off of prime, Alt-A and
subprime RMBS shelves and comprise legacy Countrywide and Bank of America
portfolios. Nationstar is currently rated 'RPS2' as a primary servicer for
subprime and Alt-A mortgages. Additionally, the servicer is rated 'RSS2' for
its special servicing capabilities. Fitch's Outlook on these servicer ratings
is Stable. Although this transaction is an MSR only transfer, Nationstar's
strategy in the past has been to maintain an adequate number of staff and
therefore expertise on-shore from the institutions it acquired (i.e Aurora
Loan Services LLC in 2012). Fitch feels this has provided Nationstar with the
capacity to acquire this additional loan servicing.

As of January 2013, the total MSR purchase comprises approximately 1.3 million
loans on a UPB of $215 billion. The portfolio comprises approximately 914
non-agency transactions with a UPB of $96.3 billion. The remaining loans are
in government sponsored enterprise (GSE) portfolios. After completion of the
transfers, Nationstar's total servicing portfolio will expand to approximately
$388 billion.

Additionally, Fitch spoke with the management at Nationstar in regards to any
potential reclassification of principal forbearance modifications. Nationstar
stated they do not expect to reclassify any principal forbearance amounts in
relation to the deals referenced herein.

The Fitch rated transaction requiring a confirmation for the first transfer of
July 1, 2013 is SEMT 2003-5.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. RMBS Surveillance Criteria' (Oct. 11, 2012).

--'Fitch Reviews proposed Servicing Transfer of Bank of America RMBS' (May 1,
2013).

Applicable Criteria and Related Research:

U.S. RMBS Surveillance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=691057

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. FITCH MAY HAVE PROVIDED ANOTHER
PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Primary Analyst:
Natasha Hanson, +1-212-908-0272
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Diane Pendley, +1-212-908-0777
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com
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