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WELLS FARGO BANK, N.A. * CORPORATE TRUST SERVICES *

MORTGAGE ASSET SERVICES

Mortgage Asset Services ("MAS") is a division within the Corporate Trust Services business of Wells Fargo Bank, N.A. MAS offers a complete package of integrated services for agency backed and private label mortgage securities including trustee, mortgage document custody, master servicing, securities administration, and tax and SEC reporting. At present, MAS provides administration services for about 387 different issuers that have created approximately 5,265 securities. MAS has over 30 years experience in providing these services, and currently has over 1,350 employees.

MAS prides itself in its continued investment in technology, which has allowed MAS to develop integrated systems using relational databases and graphical user interfaces to perform these services. This investment has also made it possible for MAS to be recognized as an industry leader in the market niches it serves. MAS has a systems staff of over 125 professionals to support this investment.

Below are some key statistics related to the services provided by MAS as of 08/31/2015.

Number of securities5,265
Number of issuers387
Number of loans master serviced3,588,557
Number of servicers1,112
Number of trusteeships3,210
Number of REMIC returns11,787
Number of Grantor Trust returns2,972
Number of Owner Trust returns650
Number of Partnership returns106
Number of FASIT returns5
Number of loans held in safekeeping12,353,128
YTD document custody deposits1,686,582
YTD document custody releases2,285,894

The combination of the services offered by MAS allows Wells Fargo the ability to offer a total solution to meet your mortgage market needs.

Trustee

In its capacity as trustee, SPS has a rapidly growing number of trusteeships and currently acts as trustee on a variety of mortgage related securitizations targeting those backed by residential A quality loans, B/C quality loans, home improvement loans, home equity loans, manufactured housing loans and commercial loans. The trustee function includes the following:

  • Review of governing documents
  • Issuance and delivery of certificates
  • Distribution of principal and interest to certificateholders
  • Distribution of fees and other payments from the trust account
  • Distribution of monthly payment date reports to certificateholders
  • Monitoring for compliance
  • Registrar of the certificates
  • Transfer agent of the certificates
  • Preparation and distribution of 1099's to certificateholders, as required

Wells Fargo Document Custody

Wells Fargo's document custody department offers certification, safekeeping and custodial services to over 100 private mortgage and asset backed issuer clients, major lending institutions, and key agency players such as Ginnie Mae, Fannie Mae, and Freddie Mac. Wells Fargo offers a complete package of integrated services for residential and commercial mortgages, and asset backed securities.

Wells Fargo has been in the document custody business for over 25 years and has one of the largest single site facilities in the U.S. Its headquarters is located in Minneapolis, Minnesota. In addition, there are three regional offices located in Richfield, Minnesota; Irvine, California; and Salt Lake City, Utah. Several of the document custody sites house a vault. The vaults have capacity for over 15 million files. In total, over 200 team members work together to ensure that Wells Fargo meets the document custody needs of its clients.

At Wells Fargo, we are committed to being the premier provider of document custody services. We are proud of our capabilities, understanding of the marketplace and our ability to deliver superior services to issuers, investors, rating agencies and other deal participants. Wells Fargo is committed to the custody market and continues to make investments in its core competencies including dedicated professionals and leading edge technology.

Check out our vault.

Master Servicing

In its capacity as master servicer, SPS interacts with approximately 1,112 active servicers who report on 3,588,557 loans. The master servicing functions include loan administration, default administration, compliance and cash management.

Using its collateral management system SPS parallel processes the loans for each servicer. This process ensures that each servicer is properly calculating all rate and payment adjustments correctly, applying additional principal received, and accurately amortizing each loan. This is accomplished primarily through the automated processing of loan data received each month from the servicers' expected remittance. Information from various servicers is then aggregated at the pool level in preparation for security administration processing or reporting to whole loan investors. Wells Fargo, under certain circumstances, can sign the annual Sarbanes-Oxley certification required by the SEC and included in the 10-K filing.

The loan administration area is responsible for:
  • Collecting servicer reports and loan data
  • Verifying servicer ARM rate adjustments
  • Verifying collateral principal and interest calculations
  • Reconciling to servicer reports
  • Consolidating servicer level reporting to security level reporting
  • Collecting servicer monthly remittances
  • Monitoring servicer monthly reporting for quality and timeliness

The default administration area is responsible for:
  • Tracking and reporting on delinquent loans
  • Monitoring servicer actions on loans in foreclosure and bankruptcy
  • Approving allowable workout alternatives
  • Overseeing the servicer marketing and maintenance of Real Estate Owned ("REO") properties
  • Collateral document release requests
  • Satisfaction and reconveyence requests
  • Substitution of trustee requests

The compliance area is responsible for:
  • Performing servicer evaluations and approvals
  • Reviewing servicer financial statements and fidelity insurance policies
  • Reviewing servicer errors and omissions policies
  • Monitoring servicer annual compliance documentation

The cash management area is responsible for reconciling servicer remittances and investing the monthly proceeds in accordance with established guidelines. The major cash management functions are:
  • Reconciling expected cash receipts to actual receipts
  • Investing daily cash receipts
  • Accounting for all investment receipts
  • Delivering cash to the appropriate trust accounts before security payment
  • Reconciling all trust accounts

Securities Administration

Securities administration involves interpreting the complex legal documents that describe the allocation of payments to various classes of securities. Each new structure is modeled to ensure that principal and interest calculations match the governing document.

The securities administration area is responsible for approximately 5,265 series of securities. On a monthly basis, the primary responsibilities of this area include:
  • Calculating principal and interest distributions to security holders
  • Allocating losses as appropriate
  • Calculating credit enhancement amounts
  • Calculating administration fees and expenses
  • Preparing security payment instructions for the trustee
  • Preparing and distributing consolidated collateral and security information reports to the trustee, issuer, security holder, rating agencies, and other interested parties
  • Monitoring and exercising optional redemption as appropriate

Tax and SEC Reporting

Tax and SEC reporting is responsible for tax calculations and regulatory filings related to all securities administered by SPS. The necessary expertise in this area has been developed in-house to ensure a quality product and to maximize efficiency. The seasoned group of professionals, working with the information systems team, developed a comprehensive tax reporting system that is fully integrated with the security administration system. This system allows the staff to focus on review of the complex issues inherent in this type of financial instrument. The responsibilities in this area include:

  • Calculating required accruals of original issue discount and market discount
  • Preparing form 1066Q reports for REMIC residual interest holders quarterly
  • Preparing form 1066 REMIC tax returns for residual interest holders and filing with the internal revenue service annually
  • Preparing form 1099 reporting for regular interest holders
  • Preparing form 1041 grantor trust tax returns
  • Preparing various SEC filings including forms 8K, 10K, and 15
  • Monitoring regulatory changes with respect to the securities