Per Business Wire, Fitch affirmed Wachovia’s prime servicer rating this week.
As Feb. 28, 2007, Wachovia Mortgage serviced more than 260,000 prime residential mortgages totaling $49.6 billion, and represents an increase of 2.9% for the first two months of 2007 from 2006 and a 32.2% increase over 2005. On Oct. 2, 2006, Wachovia Corporation completed the merger of Golden West Financial Corp. (Golden West), including its mortgage subsidiary, World Savings. Wachovia Mortgage and World Savings continue as two separate servicing operations, focusing on conventional conforming products and pay option products, respectively. Both companies are working on developing best practices between the two platforms. Additionally, Wachovia also originates prime loans through Vertice (formally AmNet), which it acquired Dec. 12, 2005.
Most interesting to me, however, was Fitch’s note that the company discontinued subprime and correspondent operations — indicating Fitch saw both moves as a positive factor in the ratings affirmation.