Fitch Reviews Additional Servicing Transfer of BANA RMBS to Nationstar
NEW YORK -- November 27, 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 transfer is scheduled for
Nov. 30 and impacts 11 Fitch-rated transactions in which BANA requested a
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.
The transactions reviewed were initially issued off of prime, Alt-A and
subprime RMBS shelves and comprise legacy Countrywide and BANA portfolios.
Nationstar is currently rated 'RPS2' as a primary servicer for subprime and
Alt-A mortgages. 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.
While Fitch's confirmation is only on 11 transactions, per information
provided by BANA, the total MSR purchase by Nationstar comprised of
approximately 58,000 loans with an unpaid principal balance (UPB) of $10
billion. This MSR transfer is in addition to Nationstar's previous MSR
acquisition from BANA of approximately 1.3 million loans with a UPB of $215
billion. As of Sept. 30, 2013, Nationstar's portfolio consisted of
approximately 1.8 million loans with a UPB of $311 billion.
Additionally, Fitch spoke with the management at Nationstar in regard 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.
A spreadsheet listing the Fitch-rated transactions that were part of the
request can be found at 'www.fitchratings.com' by performing a title search
for 'Fitch Reviews Additional Servicing Transfer of BANA RMBS to Nationstar'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'U.S. RMBS Surveillance Criteria' (Oct. 9, 2013);
--'Fitch views proposed Servicing Transfer of Bank of America RMBS' (May 1,
--'Fitch views proposed Servicing Transfer of Bank of America RMBS' (July 1,
--'Fitch views proposed Servicing Transfer of Bank of America RMBS' (July 16,
Applicable Criteria and Related Research: Fitch Reviews Additional Servicing
Transfer of BANA RMBS to Nationstar
U.S. RMBS Surveillance Criteria
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Natasha Hanson, +1-212-908-0272
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
Vanessa Purwin, +1-212-908-0269
Sandro Scenga, +1 212-908-0278
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