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Mortgage-Backed Securities: Residential and Commercial

Recognized industry leader in mortgage asset services

Wells Fargo will work with you to understand your needs and customize our suite of front-, middle-, and back-office services to optimize the performance of your residential and commercial mortgage programs. Our scalable business approach gives us the flexibility to accept new portfolios, regardless of size, on short notice, and respond to regulatory changes.
We work with mortgage buyers, sellers, issuers, advisors, guarantors, and investors in the mortgage asset services industry. Our clients include credit unions, finance companies, government entities, hedge funds, insurance companies, investment banks, mortgage companies, private equity firms, REITs, and servicers.

Trustee, paying agent, and registrar servicesShow Details

We work on a variety of mortgage-related securitizations, including:
  • Commercial loans
  • Residential loans
  • Reverse mortgage loans
  • Manufactured housing loans
  • Mortgage-backed securities
Our services include:
  • Reviewing governing documents
  • Issuing and delivering certificates
  • Distributing principle and interest to certificate holders
  • Distributing fees and other payments from the trust account
  • Distributing monthly payment date reports to certificate holders
  • Monitoring for compliance
  • Registering certificates
  • Acting as certificate transfer agent
  • Preparing and distributing 1099s to certificate holders

Mortgage loan data aggregation, servicer oversight, and master servicingShow Details

Using our collateral management systems, we act as a parallel process servicer to double-check the work and processes for each of your servicers. We provide customized services for more than 900 active loan servicers who report on approximately 5 million loans and more than 4,000 mortgage-related transactions. We can help you with:

Loan administration

  • Collecting servicer data files and reports
  • Verifying servicer ARM rate adjustments
  • Verifying collateral principle and interest calculations
  • Reconciling servicer reports
  • Collecting servicer monthly remittances
  • Monitoring servicer monthly reporting for quality and timeliness
  • Aggregating loan data for investor reporting
  • Verifying prepayment penalty
  • Overseeing participation agent and servicer for reverse mortgages

Default administration

  • Delinquency monitoring, reconciliation, reporting, and timeline management
  • Loss mitigation
    • Reviewing and approving actions in the best interest of the trust
    • Maintaining deal-level matrix of contractual modification parameters
    • Partnering with servicers on specialized modification programs to address market conditions
  • Loss review
    • Validating amounts, calculations, and legitimacy of expenses
    • Minimizing losses from unsupported amounts, errors in loan servicing, un-claimable amounts, and curtailments by MI insurer

Cash management and disbursement agentShow Details

As a leading financial institution, Wells Fargo can support all of your cash management needs, including managing and disbursing funds for lending facilities, high-volume table fundings, and trusts.
Our products and services include:
  • Establishing and maintaining eligible accounts at eligible institutions
  • Accounting for all investment receipts, including reconciling expected cash receipts with actual receipts
  • Disbursing funds per instructions
  • Providing quick turnaround on high-volume wire activity
  • Investing daily receipts
  • Securing platform for transmission of payment instructions (CTS Link Direct)

Mortgage document custodyShow Details

We will keep your records in vaults in accordance with agency, private client, or customized requirements, and implement security features such as dual access controls, two-hour fire rating, and full business continuity plans.
Our customers include:
  • Residential mortgage issuers
  • Warehouse lenders
  • Asset-backed issuers
  • Commercial mortgage issuers
  • FHLBs
  • Major lending institutions
Your assigned client manager team works with you through the certification and loan sale process. We attend to your records accurately and efficiently with 98% of all collateral releases occurring within two business days of receipt.

Portfolio Analytics and SurveillanceShow Details

Our expert Portfolio Analytics and Surveillance (PAS) team can help you with loan and default servicing, master servicing, surveillance, forensic loan reviews, and customized reporting.
We independently monitor servicer activities, which includes evaluating servicer operating procedures and overall servicing practices. Then we make recommendations for enhancing servicer processes and strategies related to portfolio delinquency management, including early- and late-stage collections, loss mitigation, foreclosures, and real estate owned loans.

Benefits of Portfolio Analytics and Surveillance

Our PAS services can help you maximize portfolio performance and reduce delinquencies and credit losses. When you work with us, you will get:
  • Heightened portfolio surveillance
  • Adaptation to market trends
  • In-depth analysis of your portfolio
  • Servicer, loan, and process levels recommendations
  • Loan exception trigger monitoring
  • Forensic loan reviews
  • Full liquidation verification and recalculation
  • Customized reporting

Increased transparency and robust reporting

Our advanced data aggregation capabilities and systems provide loan- and summary-level reports, servicer and portfolio benchmarking, and trend analysis and performance reporting to help you identify and manage credit risk.
With our online Interactive Portfolio Surveillance tool, you can view, filter, and trend portfolio performance. The tool gives you greater transparency into loan, servicer, and portfolio data, which you can use to support your in-house or external surveillance efforts.

Data integrity

We provide complete, accurate, and timely data. We manage:
  • Data collection, scrubbing, and validation
  • Data gap analysis and collection
  • Data mapping and normalization
  • Exception identification and resolution
  • Servicer collaboration and communication

Customized strategies

We can work with you to develop a customized surveillance strategy that may include:
  • Loan performance triggers
  • Program compliance reviews
  • On-site servicer reviews
  • Ongoing servicer oversight
  • P&I, corporate, and escrow advance verification
  • Funds aggregation, verification, and disbursement services
  • Consultative services such as process mapping and implementation of industry best practices

Verification agentShow Details

Get insight into your servicers’ procedures and ongoing activity for mortgage loan warehouses, securitizations, and financing facilities. We provide customized monthly and quarterly reviews, monthly delinquent loan monitoring, and on-site servicer visits.
Our services include:
Borrower base reporting
  • Creating borrower base models based on facility parameters
  • Verifying other parties’ borrower base calculations
Funding date verification
  • Verifying that the advances sold into the advance trust are legitimate and in accordance with the requirements of the contractual documents
  • Ensuring the servicer is abiding by the contractual documents through the recovery process
  • Providing verification agent sign-off notice to all deal parties
  • Providing exception documentation, tracking, and clearing reports
Delinquent and corporate advance verification
  • Reviewing legitimacy of claimable items
  • Uncovering servicing and operational trends
  • Shadowing process servicer/borrower escrow account
  • Validating T&I and corporate advances
  • Using client-defined thresholds to calculate and report triggers
  • Reviewing invoices on sample population of corporate advances
Servicer reconciliation verification activities
  • Reviewing servicer reconciliation process and monitoring clearing of reconciling differences
  • Identifying any commingling of funds
Advance reimbursement verification activities
  • Monitoring reimbursement timeliness

Securities administration and REMIC/grantor trust tax administrationShow Details

We reverse engineer waterfall structures based on the governing documents, and further stress test each waterfall model to ensure consistency with the governing document. Our securities administration services include:
Securities administration
  • Calculating principle and interest distributions to security holders
  • Allocating losses as appropriate
  • Calculating credit enhancement amounts
  • 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
REMIC/grantor trust and tax administration
  • Calculating required accruals of original issue discount and market discount
  • Preparing form 1066Q reports for REMIC residual interest holders quarterly
  • Preparing 1066 REMIC tax returns for residual interest holders and filing them 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 securities regulatory changes

REO Rental AdministrationShow Details

We provide back-office support and reporting services to investors, owners, and lenders of REO rental properties. Our services include:

Data aggregation, validation, and reporting

  • Obtaining asset-level reporting from property managers
  • Validating data for accuracy and program parameters
  • Normalizing data to client specified reporting requirements
  • Reconciling monthly property data to property-level setup data (i.e., rents received vs. expected)
  • Flexible, web-based reporting, including rolled-up and property-level reporting

Periodic property-level updates

  • New tenant/rental information
  • Asset-level improvements
  • Updated property values

Customized data validation

  • Validating expenses compared to client-defined parameters
  • Completing advance verification
  • Performing expense validation (approved vs. actual)
  • Reviewing and validating tax and insurance payments
  • Confirming approvals on capital improvements

Cash aggregation, reconciliation, and disbursement

  • Managing working capital accounts
  • Reconciling cash receipts (expected vs. actual)
  • Segregating all non-rental receipts
  • Disbursing funds

Financial accounting and/or fund administration support

  • Providing customized property-level reporting
  • Resolving discrepancies
  • Providing comprehensive fund administration services
Our corporate trust professionals are active members of the Structured Finance Industry Group, the Commercial Real Estate Finance Council, the Mortgage Bankers Association, and Mortgage Electronic Registration Systems. Our Master Servicing program has received one of the highest ratings from Fitch Ratings, Standard & Poor's, and Moody's.
For more information on our mortgage asset services, contact:

Residential mortgage asset services

  • Patrick Bassett, 612-667-6719
  • Frank Milillo, 917-260-1525

Commercial mortgage asset services

  • Ron Feldman, 917-260-1524