OVERVIEW -- We affirmed our ABOVE AVERAGE ranking on Nationstar Mortgage LLC as a residential mortgage master servicer. -- Nationstar acquired the master servicing operation from Aurora Loan Services LLC on June 28, 2012. The outlook for the ranking is stable. Dec. 10 - Standard & Poor's Ratings Services today affirmed its ABOVE AVERAGE ranking on Nationstar Mortgage LLC as a U.S. residential mortgage master servicer. The outlook on the ranking is stable. The ranking affirmation reflects our view that Nationstar has an extremely experienced staff, has experienced minimal turnover, and employs effective internal controls within its master servicing operation. Nationstar continues to maintain high servicing standards with regard to adhering to the pooling and servicing agreements and other documents that govern the securitizations it master services. Major Ranking Factors Strengths: -- Nationstar management has maintained the Seasoned and very knowledgeable management and staff from Aurora Loan Services LLC master servicing group. -- Nationstar takes a proactive approach in overseeing servicers adherence to Pooling and Servicing and other governing agreements. -- Nationstar has begun to work with servicers to review their obligations under OCC Consent Orders and settlement with US Treasury and 49 attorney Generals. Weakness: -- Portfolio runoff with limited new business opportunities due to a slow down in the securitization market. Key Changes Since Last Report Some of the key changes Nationstar has made since our last review include: -- Nationstar acquired the master servicing operation from Aurora Loan Services LLC acquired on June 28, 2012 -- Enhanced oversight of servicers that were subject to consent orders with the OCC and settlement with the US Treasury and 49 attorney generals. -- Nationstar has enhanced its reporting including developing exception reports for foreclosures not in compliance In our opinion, Nationstar has integrated the master servicing business acquired in its acquisition of Aurora Loan Services LLC successfully while maintaining the standards of our ABOVE AVERAGE ranking by maintaining Aurora's experienced management and staff as well as their infrastructure. As a master servicer, Nationstar monitors the administration of residential mortgage loans serviced by primary loan servicers and represents the interests of certificateholders in mortgage-backed securities collateralized by those residential loans under management, which include prime; subprime, and subordinate loans. We believe Nationstar has established the requisite technology and infrastructure to efficiently compile and consolidate loan-level data directly from servicers and subservicers to monitor the servicers' compliance with applicable regulations that we consider to be prudent loan servicing standards, as well as adhere to specific investor requirements. In our opinion, Nationstar has experienced staff and effective internal controls within its master servicing operation. The company continues to monitor oversight through servicer scorecards and on-site reviews. Additionally, we believe Nationstar has made necessary adjustment to its operating process to oversee increasing loan-level default issues, including monitoring the servicers' participation in loss mitigation programs, such as the U.S. Treasury's Home Affordable Modification Program (HAMP), and has also adjusted its investor reporting to account for modifications.. The company continues to enhance its oversight through servicer scorecards and on-site reviews. OUTLOOK The outlook is stable. Standard & Poor's expects Nationstar to continue to serve as a quality residential loan master servicer RELATED CRITERIA AND RESEARCH -- Revised Criteria For Including RMBS, CMBS, And ABS Servicers On Standard & Poor's Select Servicer List, published April 16, 2009. -- Servicer Evaluation Ranking Criteria: U.S., published Sept. 21, 2004. -- Select Servicer List. Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.