Wells Fargo Home Mortgage [1] (WFHM) recently received a 1- residential primary servicer 1- rating for Prime, Alt-A, and Sub Prime products from Fitch Ratings [2], welcome news to the servicer after the completion of several organizational changes within the servicer division.
In receiving a 1-, Fitch Ratings says that WFHM has demonstrated the highest standards in overall servicing ability. This is based on what Fitch Ratings calls “key rating drivers” including organizational restructuring, expanded automation functionalities, alignment of platform with portfolio size, experienced leadership team, consent order update, financial support of parent, and continued performance versus increasing costs.
“The servicer continues to invest in training and strengthened its internal control processes to provide increased oversight of its business line operations,” says Fitch. “WFHM continues its testing processes in accordance to the national servicing standards and maintains servicing procedures and controls in accordance to the respective state, private investors, and agency requirements.”
Fitch says that one of the key rating drivers, organizational restructuring, was reflective of the servicer’s effort to improve its delinquency portfolio and reduce mortgagor outreach programs.
“The servicer indicated that it is now concentrating its efforts on working with smaller community groups and to focus efforts to address home preservation issues,” says the report.
The report also states that during the period of the review, WFHM finalized the organizational changes including naming a new head of servicing and managers.
“In addition, the servicer created the position of change management,” says Fitch. “Change management will manage servicing strategy, process engineering, business architecture, and change life cycle management, focusing on the portfolio, service delivery, resources, and demands. Operational risk will continue to focus on, but not limited to, vendor management, customer impact process, and remediation efforts.”
These changes were reflective of consolidation efforts in WFHM’s process of post-crisis normalization, according to the report, and the servicer has no plans to decrease its hours of operation. Likewise, Fitch says the WFHM will “maintain its outreach program at a level commensurate with its home preservation needs and customer care servicing responsibilities.”