Nonprime Servicer Upgrades at Wells Fargo

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MORTGAGE EXPERT
10 · 16 · 09

The junior lien servicing division of Wells Fargo Bank, N.A., saw its rating upgraded.

Wells Fargo Home Equity Group’s primary servicer rating for home-equity lines-of-credit was upgraded to RPS1- from RPS2 by Fitch Ratings, a news release yesterday said.

In addition, the unit’s primary specialty servicer rating for second liens was also bumped to RPS1- from RPS2.

The best possible rating is RPS1+, while the lowest rating is RPS5-.

Fitch cited strong management, technology and default management processes among the reasons for its action. The ratings agency highlighted Wells Fargo’s expanded employee training, automated appraisal ordering process and centralized net available equity.

The financial strength of parent company Wells Fargo & Co. was also considered.

“In addition, the servicer enhanced its senior management team through several organizational changes, including the addition of three new positions, human resources, project management and execution and group technology manager,” the statement said. “Wells Fargo Home Equity Group has an experienced and tenured management team, highly developed control environment and appropriate systems and technology to effectively manage its current servicing portfolio.”

The home-equity servicer, based in San Francisco, serviced 1.4 million HELOCs and second liens for $80.5 billion as of June 30. Around 1.1 million of the loans were HELOCs and 0.3 million were fixed-rate second liens.

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