Fitch Completes Review of Proposed Servicing Transfer of First Horizon RMBS

Fitch Ratings has reviewed a request to confirm RMBS ratings in connection with the mortgage servicing rights (MSR) transfer from First Tennessee Bank National Association, as successor by merger to First Horizon Home Loans Corporation (First Horizon) to Nationstar Mortgage LLC (Nationstar). First Tennessee is selling the MSR portfolio to Nationstar as it restructures its mortgage portfolio towards a regional focus. The transfer is scheduled for Jan 16, 2014 and impacts 81 Fitch rated transactions.

Fitch has reviewed the proposed transfer and does not expect negative rating actions on any Fitch-rated classes as a result of the change. However, Fitch notes that this does not preclude the possibility that future rating actions may be taken due to rating criteria or future performance considerations.

The transactions reviewed were issued off of First Horizon's prime and Alt-A RMBS shelves. The analysis included over 22,000 loans totaling approximately $6 billion in unpaid principal balance. Although the MSR's are transferring, Fitch recognizes that all the loans in the transfer are currently subserviced by Nationstar. Further servicing disruption is not anticipated as Nationstar's staffing levels, technology, and reporting capabilities required to service the loans are viewed as sufficient for to meet its responsibilities.

Fitch currently rates Nationstar 'RPS2-' for its Alt-A primary servicer ratings and 'RSS2-' for its special servicing capabilities. Fitch's Outlook on these servicer ratings are Negative.

A spreadsheet listing the Fitch-rated transactions that were part of the request can be found at www.fitchratings.com by performing a title search for 'Fitch Completes Proposed Servicing Transfer of First Horizon RMBS'

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:
--'Fitch Reviews Proposed Servicing Transfer of First Horizon RMBS' (Nov. 20, 2013)
--'U.S. RMBS Surveillance Criteria' (Oct. 9, 2013).

Applicable Criteria and Related Research: Fitch Completes Review of Proposed Servicing Transfer of First Horizon RMBS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730436

U.S. RMBS Surveillance Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720170

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Natasha Hanson, [phone]
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Grant Bailey, [phone]
Managing Director
or
Media Relations:
Sandro Scenga, [phone]
[e-mail]