TEXT-Fitch affirms Specialized Loan Servicing servicer ratings

Mon Nov 26, 2012 4:03pm EST

Nov 26 - Fitch Ratings has taken the following actions on the U.S.
residential primary servicer ratings for Specialized Loan Servicing, LLC (SLS):

--Primary servicer rating for Alt-A product affirmed at 'RPS2'; Outlook Stable;
--Primary servicer rating for Subprime product affirmed at 'RPS2'; Outlook
Stable;
--Primary servicer rating for HELOC product affirmed at 'RPS2'; Outlook Stable;
--Primary servicer rating for Second Lien product affirmed at 'RPS2'; Outlook
Stable;
--Special servicer rating affirmed at 'RSS2'; Outlook Stable.

The servicer rating affirmations and Stable Outlook reflect SLS's continued
positive performance, technological enhancements including innovative investor
management tools, its highly focused control environment and strong foreclosure
processes and oversight.

The ratings also take into consideration the financial condition of SLS and its
parent, Computershare, both non-rated entities, as financial condition is a
component of Fitch's servicer ratings. In November 2011 Computershare acquired
SLS. Computershare is an international data management and transaction
processing business.

Finally, the ratings reflect Fitch's overall concerns for the U.S. residential
servicing industry, which include the ability to maintain high performance
standards while addressing the rising cost of servicing and changes to industry
practices which are likely to me mandated by regulators and other parties.

SLS is headquartered in Highlands Ranch, CO. As of July 31, 2012, SLS' portfolio
comprised over 231,000 loans totaling $21.3 billion. The current portfolio
contains approximately 15,500 subprime loans totaling $3.1 billion, 7,000 Alt-A
loans totaling $1.6 billion, 53,500 subprime closed-end second liens totaling
$2.3 billion, 62,200 HELOC loans totaling $3.9 billion and approximately 93,000
other loans totaling $10.8 billion.

The U.S. Residential Mortgage Servicer ratings sector remains on Negative
Outlook. On Nov 4, 2010, Fitch assigned a Negative Outlook for the entire U.S.
Residential Mortgage Servicer ratings sector on increased concerns surrounding
alleged procedural defects in the judicial foreclosure process.

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 U.S. Residential and Small Balance
Commercial Mortgage Servicer Rating Criteria', dated Jan. 31, 2011 which is
available on the Fitch Ratings web site at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Rating Criteria for Structured Finance Servicers' (Aug. 16, 2010);
--'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating
Criteria' (Jan. 31, 2011).

Applicable Criteria and Related Research:
Global Rating Criteria for Structured Finance Servicers
U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria
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