Mr Cooper Group Inc (COOP)

[Petewamu]

Established Master Servicing Operation: Washington Mutual Mortgage Securities Corp. (WMMSC) has been operating for almost 40 years, including several predecessor entities that JPMorgan Chase Bank, N.A. (Chase) acquired from Washington Mutual Bank (WaMu) and EMC Mortgage Corp. (EMC). WMMSC performs master servicing functions for legacy EMC and WaMu master-serviced transactions. Portfolio Runoff: The master servicer portfolio declined 17% from Sept. 30, 2018 to Sept. 30, 2019 by loan count. Chase’s management indicated that it does not have future plans to engage as a master servicer in new RMBS transactions. However, WMMSC continues to timely update its systems and processes with operational enhancements that incorporate industry changes. Established Master Servicing Technology: WMMSC utilizes SBO2000, a third-party vendor master servicing system with robust cash controls and verification. Chase also continues to maintain and support WMMSC’s information technology and Analytics on Demand (AOD). Effective Operational Controls: The master servicer maintains satisfactory results on its internal audit reviews. In addition, WMMSC has updated policies and procedures, and a business continuity plan. Financial Condition: In June 2019, Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) of Chase at ‘AA’/Stable. Servicer Considerations Positive: Chase has a highly experienced master servicing team, uses established technology for master servicing and employs effective operational controls. Negative: Chase continues to run off its portfolio.