Fitch Ratings has affirmed Wells Fargo Bank NA's master servicer rating at RMS1. The rating action reflects Wells Fargo's extensive master servicing experience, highly tenured senior management and robust servicing oversight program, as well as the financial condition of parent company Wells Fargo & Co., Fitch says.
Wells Fargo and its predecessor have master serviced residential mortgage loans since the late 1980s. The company is a leading master servicer of mortgage-backed securities (MBS), with a portfolio consisting of more than 2.11 million residential loans totaling $476.8 billion as of Aug. 31 – down from approximately 2.37 million loans the previous year.
Fitch says Wells Fargo has proactively monitored its primary servicers through preemptive planning for potential events of default by increasing the frequency of its on-site servicer visits, monitoring its backup-servicer readiness and reviewing potential sale solutions.
In the last 12 months, Wells Fargo had seven primary servicers that defaulted, which required Wells Fargo Bank to facilitate servicing transfers, the rating agency reports.
SOURCE: Fitch Ratings