Mortgage-Backed Securities: Residential and Commercial

Recognized leader in mortgage asset services

For over 30 years Wells Fargo Corporate Trust Services has provided specialized services and solutions to the mortgage markets. We pride ourselves on our relationship-based service delivery model, which combines experienced staff and advanced technologies.  

Trustee, securities administration, paying agent, and registrar services

We work on a variety of mortgage-related structures including commercial loans, residential loans, financing, and mortgage-backed securities.

Our services include:

  • Issuing, delivering, and registering certificates
  • Distributing principle and interest, monthly payment date reports, and 1099s to certificate holders
  • Distributing fees and other payments from the trust account
  • Acting as certificate transfer agent
  • Calculating principle and interest distributions to security holders
  • Allocating losses
  • 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
  • Exercising optional redemptions

REMIC/grantor trust tax administration

Expertise modeling 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:

  • 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

Verification agent

Gain 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
  • Funding date verification
  • Delinquent and corporate advance verification
  • Servicer reconciliation and advance reimbursement verification activities

Mortgage loan data aggregation and servicer

Using our collateral management systems, we act as a parallel process servicer to verify 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, collateral principle, and interest calculations 
  • Reconciling servicer reports 
  • Collecting servicer monthly remittances 
  • Reviewing 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 review, 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 
  • Reviewing losses from unsupported amounts, errors in loan servicing, un-claimable amounts, and curtailments by MI insurer 

Portfolio analytics and surveillance 

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 

  • 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, 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 and 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

As a leading financial institution, Wells Fargo can support 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)

We have the technology, capacity, and expertise to keep your records secure.

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.

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