Wells Fargo Bank was named master servicer of multiple issuances in 2017

  • WFB was named master servicer of multiple issuances in 2016 and 2017;
  • Realigned certain functions to create early-stage and ongoing management teams;
  • Implemented a more robust committee process to identify servicers for onsite reviews;
  • Implemented a new cash disbursement system and transitioned certain cash functions to the operations team;
  • Established documentation for and began tracking servicer loan modification programs implemented due to the sunset of the Home Affordable Modification Program;
  • Implemented an operational assessment as part of servicer reviews to further develop its analysis of servicer performance to incorporate risk areas, including vendor oversight, among others; and
  • Formalized and documented plans and processes to handle servicer default events.

The outlook for the ranking is stable. WFB maintains sound infrastructure and 
the resources necessary to operate as an effective master servicer. It also 
continues to identify opportunities to improve processes and enhance its 
technology. Despite the declining volume of its master servicing portfolio, 
WFB continues to leverage its infrastructure and expertise to identify and 
provide services to meet the needs of market participants.

Our ranking reflects:
  • The management team and staff have solid industry experience levels.
  • Strong risk management and control environment that includes proactive measures and controls.
  • A substantial master servicing platform that benefits from WFB's enterprise resources.
  • Many processes are automated, providing consistency and a level of control. WFB also continues to enhance servicing processes.
  • A comprehensive servicer management program with proactive practices to monitor trends and identify and address servicer risk.
  • Residential mortgage-backed securities (RMBS) master servicing portfolios continue to decline in size due to the limited number of new issuances to offset loan runoff. However, WFB remains an active market participant.
  • We affirmed our STRONG ranking on Wells Fargo Bank N.A. as a residential master servicer.
  • The outlook is stable, and the financial position is SUFFICIENT.