Fitch Affirms Wells Fargo Master Servicer Rating

Fitch Ratings has affirmed Wells Fargo Bank's U.S. residential master servicer rating at RMS1.

The rating action is based on Wells Fargo's robust master servicing oversight program, experienced master servicer transition management team, and enhanced data collection processes, as well as the company's strong management experience and expanded staff cross-training programs, Fitch says. The action also considers the financial strength of the bank's parent company, Wells Fargo & Co.

As of June 30, Wells Fargo master serviced more than 1.8 million loans totaling $399.8 billion – down from approximately 2.11 million loans totaling $476.8 billion the last time Fitch conducted a review. Wells Fargo's portfolio consisted of non-agency securitized loans totaling $353.3 billion and government-sponsored enterprise/Federal Home Loan Bank loans totaling $46.4 billion.

Fitch, which will monitor Wells Fargo's ability to maintain oversight of its primary servicers in the current high-default environment, says it believes the bank's master servicing platform has the competency, infrastructure and capacity to meet the challenges facing the servicing market.

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