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Fitch Examines Wells Fargo’s Servicing Improvements

Wells Fargo Home Mortgage (WFHM) has received an overall stable outlook from Fitch Ratings. Fitch affirmed WFHM residential primary servicer rating for Prime, Alt-A, and Subprime products at 'RPS1-'; Outlook Stable.

According to Fitch, the ratings and Outlooks reflect the WFHM’s ongoing continuous platform and enterprise risk management improvements, technology enhancements, and its experienced senior management team and staff.

Fitch states that as of December 31, 2018, WFHM serviced approximately 7.8 million loans totaling $1.46 trillion. This includes approximately 6.9 million agency loans totaling $1.15 trillion, approximately 748,000 owned portfolio totaling $276 billion, approximately 127,000 non-agency RMBS loans totaling $23.2 billion and approximately 38,000 third-party serviced loans totaling $6.27 billion. Fitch also notes that WFHM's overall delinquency rate fell to 4.86 percent from 6.36 percent year over year with a corresponding staff reduction of approximately 13 percent.

Recently, Wells Fargo CEO Tim Sloan announced his retirement, less than three years into his tenure running the bank. Sloan will step down at the end of June.

Allen Parker, Wells Fargo's General Counsel, will serve as interim CEO and President while the bank searches for a long-term replacement.

“In my time as CEO, I have focused on leading a process to address past issues and to rebuild trust for the future," Sloan said in a statement. "We have made progress in many areas and, while there remains more work to be done, I am confident in our leadership team and optimistic about the future of Wells Fargo." He added that his resignation came in part because "our ability to successfully move Wells Fargo forward from here will benefit from a new CEO and fresh perspectives. For this reason, I have decided it is best for the Company that I step aside and devote my efforts to supporting an effective transition."

“Tim Sloan has served this company with pride and dedication for more than 31 years, including in his role as CEO since October 2016," said Wells Fargo Board Chair Betsy Duke in a statement. "He has worked tirelessly over this period for all of our stakeholders in the best long-term interest of Wells Fargo."

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
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