U.S. RMBS Servicer Handbook

U.S. RMBS Servicer Handbook

Servicing At A Glance

July 2018/13th Edition

Structured Finance

Servicer Group Contacts

Natasha Aikins Director +1 212 908-0272 natasha.aikins@

Sean Carroll Analyst +1 646 582-4751 sean.carroll@

Richard Koch Director +1 646 582-4480 richard.koch@

Roelof Slump Managing Director +1 212 908-0705 roelof.slump@

Amit Arora Director + 1 212 612-7874 amit.arora@

Yury Dyatlovitsky Director +1 212 908-0291 yury.dyatlovitsky@

Michael Laidlaw Director +1 212 908-0251 michael.laidlaw@

Joanna Sun Analyst +1 646 582-4560 joanna.sun@

Related Criteria

Criteria for Rating Loan Servicers (February 2017)

Criteria for Rating U.S. and Canadian Residential and Small Balance Commercial Mortgage Servicers (February 2017)

Note: All data for the individual servicer profile charts and the aggregate charts on pages 3-70 are provided by the respective servicers.

Inside This Report

Servicer Arvest Central Mortgage Company Bank of America, N.A. Bank of New York Mellon Master Servicing Bayview Loan Servicing, LLC BSI Financial Services Caliber Home Loans Inc. Carrington Mortgage Services, LLC Cenlar FSB Citadel Servicing Corporation CitiMortgage Inc. Fay Servicing LLC First Republic Bank Flagstar Bank, FSB HomeStreet Bank JPMorgan Chase Bank, N.A. LoanCare, LLC Nationstar Mortgage LLC d/b/a Mr. Cooper Nationstar Mortgage LLC Ocwen Loan Servicing, LLC Planet Home Lending, LLC PNC Mortgage, a Division of PNC Bank, N.A. RoundPoint Mortgage Servicing Corporation Rushmore Loan Management Services LLC Select Portfolio Servicing, Inc. Selene Finance LP Shellpoint Mortgage Servicing Specialized Loan Servicing LLC Statebridge Company, LLC TIAA,FSB d/b/a Everbank, FSA Wells Fargo Bank, NA Wells Fargo Home Mortgage

Aggregate Servicer Charts Servicer Rating Snapshot Distribution by Investor Group RMBS Portfolio Distribution Servicer Staffing and Loans per FTE Delinquency Status of Subprime Forms of RMBS Loss Mitigation REO Inventory

RMBS Servicer Profiles -- Quarterly Handbook July 24, 2018

Servicer Ratings Primary, Special Primary Master Special, SBC Primary, Special Primary, Special Primary, Special Primary Primary Primary, Master Primary, Special Primary Primary Primary Primary, Master Primary Primary, Special Master Primary, Master, Special, SBC Primary, Special Primary Primary, Special Primary, Special Primary, Special Primary, Special Primary, Special Primary, Special Primary Primary Master Primary

Servicer Type Nonbank Bank Bank Nonbank Nonbank Nonbank Nonbank Bank Nonbank Bank Nonbank Bank Bank Bank Bank Nonbank Nonbank Nonbank Nonbank Nonbank Bank Nonbank Nonbank Nonbank Nonbank Nonbank Nonbank Nonbank Bank Bank Bank

Page 3 5 7 8

10 12 14 16 18 20 23 25 27 29 31 34 36 38 39 42 43 45 47 49 51 53 55 57 59 61 62

64 65 66 67 68 69 70

July 13, 2018 2

Structured Finance

Arvest Central Mortgage Company (CMC)

Primary Servicer

Click here for most recent servicer report.

Parent: Arvest Bank Group, Inc. Servicer Ratings: Primary servicer, RPS2+/Stable (affirmed on June 14, 2018) Products: Prime and Alt-A Lead Analyst: Michael Laidlaw

+1 212 908-0251 michael.laidlaw@

Servicer Profile

? CMC is an indirect subsidiary of Arvest Bank Group, Inc. ? Servicer of residential loans for 21 years and non-agency RMBS loans for

13 years.

? CMC is headquartered in Little Rock, AR. ? Focused on acquiring servicing rights of performing loans from other servicers. ? Does not use offshore captive service providers.

Key Rating Drivers

? Experienced leadership team. ? Effective execution of business objectives. ? Recruiting and retention program changes. ? Financial support of parent. ? Enhanced risk management control environment.

Portfolio Size and Trend (as of March 2018)

? CMC servicing 222,172 loans with a UPB $44.51 billion. ? Non-agency RMBS loans serviced totaled 5,599 with a UPB $1.45 billion. ? Fannie Mae/Freddie Mac loans serviced totaled 216,265 with a UPB of

$43.01 billion.

? Portfolio change: 6.5% growth year over year. ? CMC does not originate; growth is from acquired servicing.

At A Glance

Total Portfolio ($000) 60+ Day Delinquency of Total Portfolio (%) No. of Claims Filed -- Total Portfolio In Foreclosure Status (%) -- Total Portfolio Volume of Modifications (No.) -- Non-Agency Mods with Principal Forgiveness (No.) -- Non-Agency No. of Properties Placed in REO -- Non-Agency 60+ Day Delinquency (%) -- Non-Agency No. of Loans Foreclosed -- Non-Agency

1Q18 44,510,690

0.38 2

0.29 20 0-- 19

3.02 26

4Q17 43,650,361

1Q17 41,780,116

0.46

0.43

5

2

0.32

0.35

30

35

0

0

16

36

3.67

3.98

23

107

Aggregate Portfolio Distribution by Investor Group

Agency Amount ($) Other Amount ($)

Non-Agency Amount ($) Third Party Amount ($)

Owned Portfolio Amount ($) Total Portfolio No. (RHS)

($ Bil.) 50 45 40 35 30 25 20 15 10

5 0

1Q17

2Q17

3Q17

4Q17

(No. 000) 225

220

215

210

205

200 1Q18

RMBS Servicer Profiles -- Quarterly Handbook July 24, 2018

July 10, 2018 3

Structured Finance

Arvest Central Mortgage Company (continued)

Servicer's Non-Agency RMBS Portfolio Distribution Delinquency Status

Prime Amount ($) Subprime Amount ($) Alt-A No.

Alt-A Amount ($) Prime No. Subprime No.

60 to 89 Days Bankruptcy Status In REO Status

($ Bil.) 1.0

(No. 000) 3.4

(No. of Loans) 800

0.8

3.2 600

0.6 3.0 400

0.4

0.2

2.8 200

0.0 1Q17

2Q17

3Q17

4Q17

2.6 1Q18

0 1Q17

2Q17

3Q17

90+ Days In Foreclosure Status Total Delinquency

(Loans in Delinquency, 000)

4.4

4.2

4.0

3.8

3.6

3.4

3.2

4Q17

3.0 1Q18

Total Servicing Portfolio Distribution:

Top Five States

(No. of Loans, As of March 31, 2018)

All Other States 59%

CA 16%

IL 11%

MA 5% FL TX 5% 4%

Number of MI Claims

(No. of Claims)

MI Claims Filed MI Claims Denied

9 8 7 6 5 4 3 2 1 0

1Q17

2Q17

3Q17

MI Claims Curtailed MI Claims Rescinded

4Q17

1Q18

REO Portfolio

1?179 Days > 360 Days

(No. of Properties) 60

50

40

30

20

10

0 1Q17

2Q17

180?270 Days Avg. Age

3Q17

4Q17

271?360 Days

(Avg. Age)

160 140 120 100 80 60 40 20 0 1Q18

REO: Top Five States

(No. of Loans, As of March 31, 2018)

FL

14%

All Other States 38%

MD 14%

NJ 10%

NY 10%

IL 14%

Loans per Full-time Equivalents

(Total FTEs)

420 410 400 390 380 370 360 350 340

1Q17

Total FTEs

2Q17

3Q17

Loans per FTE

(Loans per FTE)

650

600

550

500

450

400

350

4Q17

300 1Q18

Servicer Staffing

FTEs

(FTEs)

420 410 400 390 380 370 360 350 340

1Q17

2Q17

3Q17

Temp. 4Q17

(Temp.)

100 90 80 70 60 50 40 30 20 10 0 1Q18

Loans Delinquent 90+ Days: Top Five States

(No. of Loans, As of March 31, 2018)

CA 13%

All Other States 52%

NY 11%

FL 10%

IL NJ 8% 6%

RMBS Servicer Profiles -- Quarterly Handbook

4

July 24, 2018

Structured Finance

Bank of America, N.A. (BANA) Primary Servicer

Click here for most recent servicer report.

Parent: Bank of America Corp. (A+/F1/Stable) Servicer Ratings: Primary servicer, RPS2/Stable (upgraded from `RPS2-' on May 4, 2018) Products: Prime, Alt-A, Subprime, HELOC, Second Lien Lead Analyst: Natasha Aikins

+1 212 908-0272 natasha.aikins@

Servicer Profile

? BANA is a subsidiary of Bank of America Corp. ? Servicer of residential loans and non-agency RMBS for 49 years. ? Servicing headquarters located in Charlotte, NC. ? BANA is a full-service agency and non-agency servicer. ? Uses a captive service provider with operations in India.

Key Rating Drivers

? Operational Improvements. ? Continued investments in technology. ? Comprehensive internal control environment. ? Financial condition.

Portfolio Size and Trend (as of March 2018)

? BANA servicing 3.28 million loans with a UPB of $477.91 billion. ? Non-agency RMBS loans serviced totaled 221,148 with a UPB of $32.73 billion. ? Fannie Mae/Freddie Mac/Ginnie Mae loans serviced totaled 1.63 million with a UPB

of $209.18 billion.

? Portfolio change: 7.9% decline year over year.

At A Glance

Total Portfolio ($000) 60+ Day Delinquency of Total Portfolio (%) No. of Claims Filed -- Total Portfolio In Foreclosure Status (%) -- Total Portfolio Volume of Modifications (No.) -- Non-Agency Mods with Principal Forgiveness (No.) -- Non-Agency No. of Properties Placed in REO -- Non-Agency 60+ Day Delinquency (%) -- Non-Agency No. of Loans Foreclosed -- Non-Agency

1Q18 477,914,426

1.23 179 0.36 334

1 360 1.90 207

4Q17 494,066,376

1.49 214 0.35 409

0 114 2.61 185

1Q17 519,066,472

1.35 314 0.54 731

4 147 1.83 334

Aggregate Portfolio Distribution by Investor Group

($ Bil.) 600

Agency Third Party

Non-Agency Other

Owned Portfolio Total Portfolio (RHS)

500

400

300

200

100

0 1Q17

2Q17

3Q17

4Q17

1Q18

(No. 000) 3,800 3,700 3,600 3,500 3,400 3,300 3,200 3,100 3,000

RMBS Servicer Profiles -- Quarterly Handbook

5

July 24, 2018

Structured Finance

Bank of America, N.A. (continued)

Servicer's Non-Agency RMBS Portfolio Distribution

($ Bil.) 30 25 20 15 10

5 0

Prime Amount ($) Subprime Amount ($) Alt-A No.

1Q17

2Q17

3Q17

Alt-A Amount ($) Prime No. Subprime No.

(No. 000)

140

120

100

80

60

40

20

4Q17

0 1Q18

Number of MI Claims

(No. of Claims) 350

MI Claims Filed MI Claims Denied

300

250

200

150

100

50

0 1Q17

2Q17

3Q17

MI Claims Curtailed MI Claims Rescinded

4Q17

1Q18

Delinquency Status

60 to 89 Days Bankruptcy Status In REO Status

(No. of Loans, 000)

35 30 25 20 15 10

5 0

1Q17

2Q17

3Q17

90+ Days In Foreclosure Status Total Delinquency

(Loans in Delinquency, 000) 200

150

100

50

4Q17

0 1Q18

Total Servicing Portfolio Distribution: Top Five States

(No. of Loans, As of March 31, 2018)

FL 20%

All Other States 55%

CA 9%

TX 7% NY NJ 5% 4%

REO Portfolio

1?179 Days > 360 Days

(No. of Properties) 2,000

1,500

1,000

500

0 1Q17

2Q17

180?270 Days Avg. Age

3Q17

4Q17

271?360 Days

(Avg. Age) 250 200 150 100 50 0

1Q18

REO: Top Five States

(No. of Loans, As of March 31, 2018)

FL 13%

All Other States 58%

NJ 9%

MI 7%

IL 7%

CA 6%

Loans per Full-time Equivalents

(Total FTEs)

7,000 6,000 5,000 4,000 3,000 2,000 1,000

0 1Q17

Total FTEs

2Q17

3Q17

Loans per FTE

(Loans per FTE)

4Q17

1Q18

1000 900 800 700 600 500 400 300

Servicer Staffing

FTEs

(FTEs) 7,000 6,000 5,000 4,000 3,000 2,000 1,000

0

1Q17

2Q17

3Q17

Temp. 4Q17

(Temp.)

160 140 120 100 80 60 40 20 0 1Q18

Loans Delinquent 90+ Days: Top Five States

(No. of Loans, As of March 31, 2018)

FL

18%

All Other

States

51%

CA

11%

NY 7%

TX NJ 7% 6%

RMBS Servicer Profiles -- Quarterly Handbook

6

July 24, 2018

Bank of New York Mellon Master Servicing (BNY Mellon) Master Servicer

Click here for most recent servicer report.

Parent: The Bank of New York Mellon Corporation (AA-/F1+/Stable) Servicer Ratings: Master servicer, RMS2/Stable (affirmed on Nov. 29, 2017) Lead Analyst: Michael Laidlaw

+1 212 908-0251 michael.laidlaw@

Servicer Profile

? BNY Mellon is a subsidiary of The Bank of New York Mellon Corporation. ? BNY Mellon has been a master servicer of RMBS since 1990. ? Operations are headquartered in New Albany, OH and Pittsburgh, PA. ? Provides master servicing for RMBS transactions. ? Does not use offshore servicer providers for any master servicing functions.

Key Rating Drivers

? Experienced management team. ? Effective servicing platform changes. ? Financial strength of parent. ? Shift in organizational structure.

Portfolio Size and Trend (as of March 2018)

? BNY Mellon master servicing 138 non-agency RMBS transactions covering 27,576

loans for approximately $3.57 billion.

? Other loans master serviced totaled 137,972 with a UPB of $20.29 billion. ? Portfolio change: 1.8% growth year over year. ? Master servicing portfolio generally increasing despite declining non-agency RMBS

portfolio.

RRMMBBSSSSeervrviciceer rPProrofifleiless--? Quarterly Handbook July 24, 2018

Structured Finance

Total Master Servicing Portfolio

($ Bil.)

Non-Agency RMBS Loans Master Serviced Other Loans Master Serviced Total Master Servicing Portfolio (RHS)

30

25

20

15

10

5

0 1Q17

2Q17

3Q17

4Q17

(No. of Loans, 000)

168 166 164 162 160 158 156 154 1Q18

Delinquency Status of Total Master Servicing Portfolio

(No. of Loans, 000)

8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0

1Q17

60?90 Days 90+ Days In Foreclosure

2Q17

In Bankruptcy In REO Total Delinquency (RHS)

(No. of Total Delinquencies, 000)

3Q17

4Q17

16 14 12 10 8 6 4 2 0 1Q18

Staffinga

(Total No. of Master Servicing FTEs)

35

30

25

20

15

10

5

0 1Q17

2Q17

3Q17

4Q17

1Q18

aIncludes part-time, temporary and contract workers.

Total Master Servicing Portfolio:

Top Five States

(No. of Loans, As of March 31, 2018)

CA 3% TX

2%

All Other

FL

States

2%

90%

NY

1%

NJ

1%

7

Structured Finance

Bayview Loan Servicing, LLC (BLS)

Primary and Special Servicer

Click here for most recent servicer report.

Parent: Bayview Asset Management, LLC (BAM) Servicer Ratings: Special servicer, RSS2+/Stable; Small balance primary servicer, SBPS2+/Stable; Small balance special servicer, SBSS2+/Stable (affirmed on Aug. 31, 2017) Products: RMBS and Small Balance Commercial (SBC) Primary and Special Servicing Lead Analyst: Michael Laidlaw

+1 212 908-0251 michael.laidlaw@

Servicer Profile

? BLS is a subsidiary of BAM. ? Servicer of residential and SBC loans and non-agency RMBS since 1999. ? Operations are headquartered in Coral Gables, FL, with additional offices located in

Florida, Texas, Pennsylvania and Arizona.

? Focused on high-touch servicing of distressed loans. ? Does not utilize offshore vendors for any of its customer-facing functions.

Key Rating Drivers

? Enhanced loan conversion systems and procedures. ? Experienced management team. ? Continued automation. ? Effective default management technology. ? Financial support of parent.

Portfolio Size and Trend (as of March 2018)

? BLS servicing 195,998 loans with a UPB of $24.04 billion. ? Non-agency RMBS loans serviced totaled 91,011 with a UPB of $7.47 billion. ? Fannie Mae and Freddie Mac loans serviced totaled 26,217 with a UPB of

$3.61 billion.

? Portfolio change: 4.4% decline year over year.

At A Glance

Total Portfolio ($000) 60+ Day Delinquency of Total Portfolio (%) No. of Claims Filed -- Total Portfolio In Foreclosure Status (%) -- Total Portfolio Volume of Modifications (No.) -- Non-Agency Mods with Principal Forgiveness (No.) -- Non-Agency No. of Properties Placed in REO -- Non-Agency 60+ Day Delinquency (%) -- Non-Agency No. of Loans Foreclosed -- Non-Agency

1Q18 24,039,400

10.08 200 7.99

2,314 951

1,408 5.91

2,285

4Q17 25,256,100

11.79 221 8.24

1,290 695 736 7.32 844

1Q17 25,158,690

9.09 264 10.20 1,138 321 831 7.09 856

Aggregate Portfolio Distribution by Investor Group

Agency Amount ($) Third Party Amount ($)

Non-Agency Amount ($) Other Amount ($)

Owned Portfolio Amount ($) Total Portfolio No. (RHS)

($ Bil.) 30 25 20 15 10

5 0

1Q17

2Q17

3Q17

4Q17

1Q18

(No. 000) 220 215 210 205 200 195 190 185 180 175 170

RRMMBBSSSSeervrviciceerrPProrofiflieless--? Quarterly Handbook

8

July 24, 2018

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