Moody's con­firms US Bank prime SQ

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NEW YORK

Global rat­ing agency Moody's has con­firmed U.S. Bank Home Mort­gage's Ser­vicer Qual­ity (SQ) as­sess­ment of 2- as a pri­mary ser­vicer of prime res­i­den­tial mort­gage loans. The as­sess­ment is no longer on re­view for down­grade.

US Bank is ac­tive in the orig­i­na­tion, pur­chase and sale of prime, gov­ern­ment in­sured, and state hous­ing agency res­i­den­tial mort­gage loans. U.S. Banks ser­vic­ing port­fo­lio to­taled ap­prox­i­mately $ 258 bil­lion in un­paid prin­ci­pal bal­ance as of Au­gust 2012, re­flect­ing mod­er­ate growth in the ser­vic­ing port­fo­lio.

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

Moody's prime ser­vicer as­sess­ment is based on U.S. Bank's above av­er­age col­lec­tion abil­i­ties, av­er­age loss mit­i­ga­tion re­sults, av­er­age fore­clo­sure and REO time­line man­age­ment and strong ser­vic­ing sta­bil­ity.

The col­lec­tions cat­e­gory was up­graded to above av­er­age from av­er­age. The up­grade was mainly driven by pos­i­tive roll rate per­for­mance re­sults as com­pared to peers and im­proved call cen­ter met­rics dur­ing the re­view pe­riod. For loss mit­i­ga­tion, the cat­e­gory as­sess­ment was low­ered to av­er­age from above av­er­age due to U.S. Bank's lower vol­ume of mod­i­fi­ca­tions and short sales in re­la­tion to other ser­vicers.

U.S. Bank pos­sesses strong ser­vic­ing sta­bil­ity. U.S. Bank is a division of U.S. Bank, N.A., which is rated Aa2 for long term de­posits. U.S. Bank, N.A. is a wholly-owned sub­sidiary of U.S. Ban­corp rated Aa3 for se­nior un­se­cured debt. The rat­ings are on re­view for pos­si­ble down­grade.

The pre­vi­ous as­sess­ment ac­tion for U.S. Bank SQ as­sess­ment oc­curred on June 23, 2011. At that time, we placed U.S. Bank's as­sess­ment as a pri­mary ser­vicer of prime loans on re­view for down­grade.

Global rat­ing agency 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.

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