Fitch Rates Wells Fargo Mortgage Backed Securities 2001-21

Business Wire, Sept 28, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 28, 2001

Wells Fargo Mortgage-Backed Securities $1.11 billion mortgage pass-through certificates, series 2001-21, classes A-1 through A-29, A-PO, A-R, and A-LR are rated 'AAA' by Fitch.

Additionally, $16.1 million class B-1 certificates are rated 'AA', $6.9 million class B-2 certificates 'A', and $4.6 million class B-3 certificates are rated 'BBB.'

The 'AAA' rating on the class A senior certificates reflects the 3% subordination provided by the 1.40% class B-1, the 0.60% class B-2, the 0.40% class B-3, and the 0.60% unoffered class B certificates. Fitch believes the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. The rating also reflects the high quality of the underlying collateral, the integrity of the legal and financial structures and the servicing capabilities of Wells Fargo Home Mortgage, Inc. (WFHM).

The mortgage pool consists of recently originated, conventional 30 year fixed-rate mortgage loans secured by one- to four- family residential properties located primarily in California (34.57%), New York (6.86%) and New Jersey (5.87%). Weighted average FICO of the pool is 723 with 69.02% and 9.87% of the loans possessing FICO Scores greater than 700 and less than 650, respectively. The weighted average original loan to value ratio (OLTV) of the pool is approximately 69.47% with 4.50% of the loans having an OLTV in excess of 80%. Approximately 18.77% of the loans have principal balances greater than $600,000. The weighted average coupon of the loans is 7.39% and the weighted average remaining term is 358 months.

The mortgage loans were originated or acquired by WFHM, and in turn sold to Wells Fargo Asset Securities Corporation, which transferred the mortgage loans into the trust. Wells Fargo Bank Minnesota, N.A., an affiliate of WFHM, will act as master servicer, and First Union National Bank will act as trustee. Wells Fargo Asset Securities Corporation, a special purpose corporation, deposited the loans into the trust, which then issued the certificates. A real estate mortgage investment conduit (REMIC) election will be made with respect to the trust estate for federal income tax purposes.