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Announcement - Servicer:

Moody's confirms U.S. Bank Home Mortgage RPM prime SQ assessment

Global Credit Research - 05 Feb 2013

U.S. RESIDENTIAL MORTGAGE SERVICER ASSESSMENT ACTION

New York, February 05, 2013 -- Moody's Investors Service has confirmed U.S. Bank Home Mortgage Residential Portfolio Management's (U.S. Bank Home Mortgage RPM) Servicer Quality (SQ) assessment of 3+ as a primary servicer of prime/Alt-A residential mortgage loans. The assessment is no longer on review for downgrade.

U.S. Bank Home Mortgage RPM is a division of U.S. Bank National Association, which acquired the residential loan portfolio of Downey Savings and Loan Association from the FDIC in November 2008.

ASSESSMENT RATIONALE

The review for downgrade, initiated June 23, 2011 because of foreclosure document execution concerns, was concluded. U.S. Bank Home Mortgage RPM completed the review and remediation of their affidavits and foreclosure document execution process, making significant changes as a result of their internal reviews and compliance with the OCC consent order.

Moody's prime/Alt -A servicer assessment is based on U.S. Bank Home Mortgage RPM's average collection abilities, above average loss mitigation results, average foreclosure and REO timeline management and above average servicing stability.

The collections category was affirmed at average. The company continues to invest in collection and customer service call center technology. The company's roll rate performance results improved compared to the prior review. For loss mitigation, the category assessment was affirmed at above average. The company had a higher volume of short sales in relation to other servicers we assess.

The stability assessment was lowered to above average from strong mainly due to the continued decline in the servicing portfolio. U.S. Bank Home Mortgage RPM's servicing portfolio totaled approximately $ 7.1 billion in unpaid principal balance as of September 2012. U.S. Bank Home Mortgage RPM is a division of U.S. Bank, N.A., which is rated Aa3 for long term deposits. U.S. Bank, N.A. is a wholly-owned subsidiary of U.S. Bancorp rated A1 for senior unsecured debt.

The previous assessment action for U.S. Bank Home Mortgage RPM SQ assessment occurred on June 23, 2011. At that time, we assigned U.S. Bank Home Mortgage RPM an SQ3+ as a Prime/Alt-A servicer and placed the assessment on review for downgrade.

Moody's SQ assessments represent its view of a servicer's ability to prevent or mitigate asset pool losses across changing markets. The assessment scale ranges from SQ1 (strong) to SQ5 (weak). Where appropriate, a "+" or "-" modifier will be appended to the relevant assessment to indicate a servicer's relative servicing quality within a particular category.

The principal methodology used in this assessment was "Moody's Approach to Rating Residential Mortgage Servicers" published in January 2001. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Other Factors used in this assessment are described in "Updated Moody's Servicer Quality Rating Scale and Definitions" published in May 2005.

REGULATORY DISCLOSURES

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Francis Wissman
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

William E Fricke
VP - Senior Credit Officer
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's confirms U.S. Bank Home Mortgage RPM prime SQ assessment
No Related Data.

 

© 2013 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

 


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