Fitch Affirms Bank of America's U.S. RMBS Servicer Ratings

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed the following U.S. residential mortgage servicer ratings for Bank of America, N.A. (BANA):

--Primary servicer rating for Prime product at 'RPS2-'; Outlook Stable;

--Primary servicer rating for Alt-A product at 'RPS2-'; Outlook Stable;

--Primary servicer rating for HELOC product at 'RPS2-'; Outlook Stable;

--Primary servicer rating for Subprime product at 'RPS2-'; Outlook Stable;

--Primary servicer rating for Second Lien product at 'RPS2-; Outlook Stable;

--Special servicer rating at 'RSS2-'; Outlook Stable.

The rating actions and Stable Outlook for BANA's servicer ratings reflect sustained improvements in internal audit results, continued investment in technology, and substantial progress in improving the delinquency profile of the servicing portfolio. In addition, the ratings incorporate the company's financial condition. BANA is rated 'A' with a Negative Outlook by Fitch.

During the current review period, BANA continued to make substantial progress in reducing the size of its delinquent mortgage loan portfolio. BANA's overall servicing portfolio decreased by 13.1% from Dec. 31, 2013 through Dec. 31, 2014, after decreasing by 35.2% in the prior 12 month period. The portfolio of loans that are 60 or more days delinquent decreased by 30.1% from Dec. 31, 2013 through Dec. 31, 2014, after decreasing by 51.5% during the prior 12 month period. The significant portfolio reduction has enabled the company to focus on realigning its mortgage servicing operations while consolidating sites.

As of March 31, 2015, BANA was servicing 5,234,912 loans totaling $674.6 billion, a decrease from 6,204,596 loans totaling $817.2 billion as of Dec. 31, 2013. The total servicing portfolio included 10.4% non-agency first lien prime product, 1% first lien Alt-A product, 2% first lien subprime product, 25.1% HELOC product and 5.2% closed-end second lien product based on loan count. BANA's special servicing portfolio consisted of 4,968 loans totaling $213.2 million.

BANA continues to invest in technology and operational initiatives. During the current review period, the company's technology projects focused on infrastructure upgrades, applications optimization, and enhancements to its borrower portal. Fitch will continue to monitor BANA's ability to maintain performance as it continues to work to optimize its mortgage servicing operations.

Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'Rating Criteria for U.S. Residential and Small Balance Commercial Mortgage Servicers', dated April 23, 2015 which is available on the Fitch Ratings web site at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating Criteria for Structured Finance Servicers' (Jan. 31, 2014);

--'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria' (Jan. 31, 2014).

Applicable Criteria and Related Research:

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864375

Rating Criteria for U.S. Residential and Small Balance Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864368

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984387

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Fitch Ratings
Primary Analyst
Thomas Crowe
Senior Director
+1-212-908-0227
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Roelof Slump
Managing Director
+1-212-908-0705
or
Committee Chairperson
Suzanne Mistretta
Senior Director
+1-212-908-0639
or
Media Relations:
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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