Fitch Completes Review of Proposed Servicing Transfer of First Horizon RMBS
NEW YORK -- January 15, 2014
Fitch Ratings has reviewed a request to confirm RMBS ratings in connection
with the mortgage servicing rights (MSR) transfer from First Tennessee Bank
National Association, as successor by merger to First Horizon Home Loans
Corporation (First Horizon) to Nationstar Mortgage LLC (Nationstar). First
Tennessee is selling the MSR portfolio to Nationstar as it restructures its
mortgage portfolio towards a regional focus. The transfer is scheduled for Jan
16, 2014 and impacts 81 Fitch rated transactions.
Fitch has reviewed the proposed transfer and does not expect negative rating
actions on any Fitch-rated classes as a result of the change. 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 issued off of First Horizon's prime and Alt-A
RMBS shelves. The analysis included over 22,000 loans totaling approximately
$6 billion in unpaid principal balance. Although the MSR's are transferring,
Fitch recognizes that all the loans in the transfer are currently subserviced
by Nationstar. Further servicing disruption is not anticipated as Nationstar's
staffing levels, technology, and reporting capabilities required to service
the loans are viewed as sufficient for to meet its responsibilities.
Fitch currently rates Nationstar 'RPS2-' for its Alt-A primary servicer
ratings and 'RSS2-' for its special servicing capabilities. Fitch's Outlook on
these servicer ratings are Negative.
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 Completes Proposed Servicing Transfer of First Horizon RMBS'
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'Fitch Reviews Proposed Servicing Transfer of First Horizon RMBS' (Nov. 20,
--'U.S. RMBS Surveillance Criteria' (Oct. 9, 2013).
Applicable Criteria and Related Research: Fitch Completes Review of Proposed
Servicing Transfer of First Horizon RMBS
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
Grant Bailey, +1-212-908-0544
Sandro Scenga, +1-212-908-0278
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