Moody's Affirms WFC's Ratings
Moody's Investors Service has affirmed Wells Fargo Bank's top ratings as a primary servicer of both prime and subprime mortgage loans.
In addition to affirming the "SQ1" ratings as a primary servicer, Moody's also affirmed Wells Fargo's "SQ2" rating as a special servicer.
Moody's noted that the company's senior unsecured debt is rated "Aaa." In addition, the rating agency said it was impressed by Wells Fargo Home Mortgage's strong collection abilities, strong prime loss mitigation and above-average subprime loss mitigation results, as well as the company's "above-average" foreclosure and REO timeline management.
As of Dec. 31, Wells Fargo serviced $1.18 trillion of home loans, which was an increase of 18% from the end of 2006.
Like other lenders, Wells Fargo has seen delinquencies rise in its portfolio. For the fourth quarter, Wells Fargo reported that net charge-offs increased to $1.2 billion, or 1.28% of total loans on an annualized basis. The company said that about half of the increase was concentrated in its consumer real estate portfolio, largely related to home equity loans. The home equity channels that accounted for most of the problems have been discontinued, the company said. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/