December 10, 2012 / 4:43 PM / 5 years ago

TEXT-Fitch affirms Bayview's servicer ratings

Dec 10 - Fitch Ratings has affirmed Bayview Loan Servicing, LLC's (BLS) U.S.
residential special and small balance commercial servicer ratings and assigned
the issuer a Positive Outlook:

-- U.S. Residential Special Servicer Rating at 'RPSS2' Outlook Positive
-- U.S. Small Balance Commercial Primary Servicer Rating at 'SBPS2' Outlook
-- U.S. Small Balance Commercial Special Servicer Rating at 'SBSS2' Outlook

The servicer ratings affirmation and assignment of a Positive Outlook reflect
BLS's enhanced and fully integrated default management technology, seasoned,
highly functional and incentivized asset management process, as well as its
experienced and stable senior management team. The ratings also reflect BLS's
developed internal controls and processes, with the servicer maintaining full
compliance with no material findings in its Reg AB and USAP annual

In addition, the ratings were determined in accordance with Fitch's criteria
'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating
Criteria' which is available on the Fitch Ratings web site at
''. The residential servicer rating also reflects Fitch's
overall concerns for the U.S. residential servicing industry. These include the
ability to maintain high performance standards while addressing the rising cost
of servicing and changes to industry practices, which is likely to be mandated
by regulators and other parties.

Fitch does not publicly rate the credit and financial strength of BLS or its
parent. However, Fitch's financial institutions group reviewed BLS's financial
statements to provide an internal assessment, as a company's financial condition
is a component of Fitch's servicer rating analysis.

Headquartered in Coral Gables, FL, BLS is the servicing arm of Bayview Asset
Management, LLC (BAM), which was created in October 2008 with Blackstone Capital
Partners, an affiliate of The Blackstone Group, holding a significant minority
ownership interest. The parent is a privately held fund management business
involved in mortgage acquisition and securitization.

The servicer provides full-service residential mortgage and small balance
commercial loan primary and special servicing with locations in Coral Gables,
FL, Pompano Beach, FL, Hurst, TX, Ft. Washington, PA, Chicago, IL and San Juan,
Puerto Rico. BLS continues to expand its platform through its 'component
servicing' and 'servicing for others' for seriously delinquent or at risk of
imminent default portfolios.

As of June 30, 2012, BLS serviced 33,676 residential mortgage loans totaling
$7.02 billion. This is further broken down by product as follows: private RMBS
12,935 loans totaling $1.59 billion, third-party servicing 9,563 totaling $3.1
billion, owned portfolio 11,070 loans totaling $2.3 billion and agency 108 loans
totaling $3.15 million.

In addition, the servicer primary serviced 4,294 small balance commercial loans
totaling $1.43 billion covering 4,550 properties and special serviced 5,149
small balance loans totaling $1.81 billion. The top-four percentage breakout of
the portfolio by unpaid principal balance is as follows: 26.65% other real
estate properties not considered multifamily units; 19.53% office properties;
18.91% multi-family units, and 19.55% retail use properties. The remaining
portfolio consists of mixed-use, hotel/motel, self-storage, health care
facilities and land loans.

The U.S. Residential Mortgage Servicer ratings sector continues to have a
Negative Outlook. On Nov. 4, 2010, Fitch assigned a Negative Outlook for the
entire U.S. Residential Mortgage Servicer ratings sector on increased concerns
surrounding alleged procedural defects in the judicial foreclosure process.

Fitch rates residential mortgage primary, master, and special servicers on a
scale of 1 to 5, with 1 being the highest rating. Within some of these rating
levels, Fitch further differentiates ratings by plus (+) and minus (-) as well
as the flat rating. For more information on Fitch's residential servicer rating
program, please see Fitch's report 'Rating U.S. Residential and small Balance
Commercial Mortgage Servicers Rating Criteria', dated Jan. 31, 2011 and 'Global
Rating Criteria for Structured Finance Servicers' dated Aug. 16, 2010, which is
available on the Fitch Ratings web site at ''.

Additional information is available at ''. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Rating U.S. Residential and Small Balance Commercial Mortgage Servicer Rating
Criteria', dated Jan. 31, 2011.

Applicable Criteria and Related Research:
U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria

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