Fitch Affirms Wells Fargo's Primary RMBS Servicer Ratings

  Fitch Affirms Wells Fargo's Primary RMBS Servicer Ratings

Business Wire

NEW YORK -- October 11, 2013

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 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 Stable Outlook reflect the continued
operational changes that the servicer instituted since 2011 to meet its
obligations under the various settlement agreements with both Federal and
State Agencies. The ratings also reflect the Feb. 28, 2013 amendments that
WFHM entered into for the April 2011 Interagency Consent Order with both the
Office of the Comptroller of the Currency (OCC) and the Federal Reserve Bank
(FRB), which effectively ceased the Independent Foreclosure Review (IFR)
program created by the Interagency Consent Order and replaced it with an
accelerated remediation process administered by both offices.

In addition, the servicer indicated that it completed the final phase of
Article VII of the Independent Foreclosure Review (IFR) settlement, which
allowed it to re-integrate leaders to resume their core responsibilities and
in some cases assumed additional roles in the operations of the servicing
platform.

Additionally, the servicer realigned all responsibilities and functions
covering both performing and default servicing into one business unit and
created a highly specialized enterprise-wide customer service unit to track,
monitor, and develop solutions for solving customers' complaints for both its
production and servicing business entities. Fitch believes that the
realignment will meet the objectives of the consent order.

Under the agreement WFHM is providing additional assistance, such as loan
modifications, to consumers and are 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 they anticipate meeting this commitment by the Jan. 7, 2015
deadline.

WFHM is still under signed Consent Orders with the FRB, OCC and the respective
Attorneys General and remain 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 servicer
indicated that as of June 30, 2013, it believes to have successfully executed
activities required under both the Consumer Relief (and state-level
sub-commitments) and the Refinance Programs in accordance with the terms of
its commitment.

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

Further, the ratings also reflect Fitch's overall concerns for the U.S.
residential servicing industry. These include the ability to maintain high
performance standards while addressing the rising cost of servicing and
changes to industry practices, which is likely to be 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
June 30, 2013, WFHM serviced 9,539,454 loans totaling $1.67 trillion,
including approximately 8.16 million agency loans totaling $1.34 trillion,
784,976 prime loans totaling $240 billion, 14,331 Alt-A loans totaling $3.69
billion and 100,497 subprime loans totaling $14.3 billion.

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=804821

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Contact:

Fitch Ratings
Primary Analyst
Michael Laidlaw, +1-212-908-0251
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Diane Pendley, +1-212-908-0777
Managing Director
or
Chairperson
Karen Trebach, +1-212-908-0215
Senior Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com