Fitch Ratings has affirmed
The Rating Outlook remains Negative based on integration and transition risks tied to the anticipated acquisition of the master servicing operation by
Key Rating Drivers
The 'RMS1-' rating reflects continued enhancements to
WFBMS is part of the
Fitch is monitoring the progress of the arrangements being put in place leading up to the expected closing date, including the effectiveness of WFC's two-year transitional servicing agreement with CTS in support of the transition, regulatory approvals and operational effectiveness, and the transition of CTS's master servicing systems, controls, procedures and staff into CTCNA. While the transaction is large and relatively complex, both Wells and
Over the past year, WFBMS continued to implement a new file/data intake application to support the current deal/loan/asset master servicing operation, which is also expandable to other asset types. The master servicer indicated that it has successfully transitioned 75% of its legacy portfolio to the OneCTS enhanced technology platform for its proprietary interface for master servicing. The OneCTS tool is expected to be integrated into CTCNA.
The master servicing operation maintains a staff of approximately 212 full-time equivalents (FTE), as well as leveraging the shared services of CTS, which include human resources, finance, legal and technology business partnerships for support; most CTS staff are expected to join CTCNA. WFBMS uses temp-to-perm as a hiring strategy and, during this review period, had 40 new hires and completed 33 FTEs internal promotions. Combined voluntary and involuntary staff turnover averaged 8.3%, which represents an improvement from the 10.4% recorded during the prior review period. WFBMS is headquartered in
WFBMS' portfolio was reduced by approximately 113,000 loans over the past year; this was largely driven by prepayments from its legacy portfolio. As ofJune 30, 2021 , WFBMS serviced approximately 888,000 loans totaling$163.9 billion . This breaks down into approximately 439,500 non-agency RMBS loans totaling$98.1 billion , approximately 33,000 agency loans totaling$1.6 billion and 415,400 other master serviced loans totaling$64.1 billion .RATING ACTIONSENTITY/DEBT RATINGPRIOR Wells Fargo Bank, N.A.
? RMBS Master Servicer
RMS1- Affirmed RMS1-
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