Fitch Ratings has taken the following rating actions on the U.S. residential primary servicer ratings for Wells Fargo Home Equity Group, (WFHE), formerly known as Wells Fargo Consumer Credit Group, a division of Wells Fargo Bank, N.A.:
-U.S residential primary servicer rating for Home Equity Line of Credit (HELOC) affirmed at ‘RPS2’;
-U.S. residential primary specialty servicer rating for second lien product assigned ‘RPS2’.
The primary servicer rating actions are based on WFHE’s strong management team, highly developed control environment and continued investment in new technology and default management. The ratings also reflect the financial strength of Wells Fargo Bank, N.A.,(WFB; rated ‘AA’ with a Stable Outlook by Fitch).
As of 30 June 2008, WFHE serviced approximately 1.6 million loans totaling $85.5B and this is further broken down as 1,167,012 HELOC’s totaling $66.4B and 397,778 second lien fixed rate products totaling $19.1B.
To attack the rising delinquency within its servicing portfolio WFHE has made several organizational and personnel changes during the course of this year. Also company implemented several programs to accelerate its customer contact with the highest risk borrowers and developed various loss mitigation tools to reduce losses.
Fitch appreciated WFHE’s servicing staff, adequate processes and technology to effectively manage its current servicing portfolio.
Fitch will continue to monitor the effectiveness of recent and planned changes to WFHE’s default administration areas and its ability to maintain performance in a rising delinquency environment.
L.D.