TEXT-S&P: U.S. mortgage servicer settlement should not affect ratings

Feb 10 - The $25 billion settlement the five largest mortgage
servicers reached with the U.S. government and 49 state attorneys general on
Feb. 9 shouldn't negatively affect the ratings on the companies, said an article
published today titled "U.S. Mortgage Servicers' $25 Billion Settlement
Shouldn't Affect Ratings."

The settlement addresses mortgage loan servicing and foreclosure abuses and
puts to rest state and federal investigations asserting that these companies'
mortgage servicing activities violated certain civil laws. The five banks that
own the servicers included in the settlement are Ally Financial Inc.
(B+/Stable/C), Bank of America Corp. (A-/Negative/A-2), Citigroup Inc.
(A-/Negative/A-2), JPMorgan Chase & Co. (A/Stable/A-1), and Wells Fargo & Co.
(A+/Negative/A-1).

The state and federal coalition plans to pursue similar settlements with
smaller mortgage servicers once they finalize this agreement, beginning with
those that agreed last year with the Office of the Comptroller of the Currency
to address foreclosure practices.

"We don't expect this settlement to have a negative impact on the ratings on
these banks," said Standard & Poor's credit analyst Matthew Albrecht. While
the specific terms of the settlement aren't quite final, the general terms
have been widely discussed for more than a year. Consequently, the banks have
had some time to prepare, and we believe they are well reserved for the
settlement's costs. We also expect that the ultimate terms will fall within
our expectations. The impact on earnings and capital should be negligible.

The report is available to subscribers of RatingsDirect on the Global Credit
Portal at www.globalcreditportal.com. If you are not a RatingsDirect
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280
or sending an e-mail to research_request@standardandpoors.com. Ratings
information can also be found on Standard & Poor's public Web site by using
the Ratings search box located in the left column at www.standardandpoors.com.
Members of the media may request a copy of this report by contacting the media
representative provided.

Primary Credit Analyst: Matthew Albrecht, CFA, New York 212-438-1867;
matthew_albrecht@standardandpoors.com
Secondary Contact: Rodrigo Quintanilla, New York (1) 212-438-3090;
rodrigo_quintanilla@standardandpoors.com