Fitch Rates Wells Fargo Mortgage Backed Securities Series 2002-3

Business Wire, Feb 28, 2002

Business Editors

NEW ROK--(BUSINESS WIRE)--Feb. 28, 2002

Fitch Ratings--Wells Fargo Mortgage Backed Securities $485.7 million mortgage pass-through certificates, series 2002-3, classes A-1 through A-19, A-PO, A-R, and A-LR are rated 'AAA' by Fitch Ratings.

The 'AAA' rating on the senior certificates reflects the 2.95% subordination provided by the 1.55% class B-1, the 0.50% class B-2, the 0.40% class B-3, and the 0.50% non-offered class B certificates. Fitch believes the amount of credit enhancement will be sufficient to cover credit losses, as well as 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), rated RPS1 by Fitch.

The mortgage pool consists of recently originated, conventional, 20- to 30-year fixed-rate mortgage loans secured by one- to four-family residential properties located primarily in California (41.91%) and New Jersey (6.64%). Weighted average FICO of the pool is 728 with 69.38% and 8.65% of the loans possessing FICO Scores greater than 700 and less than or equal to 650, respectively. The weighted average original loan-to-value ratio (OLTV) of the pool is approximately 65.87% with 3.87% of the loans having an OLTV in excess of 80%. Approximately 25.00% of the loans have principal balances greater than $600,000. The weighted average coupon of the loans is 6.90% and the weighted average remaining term is 356 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. An election will be made to treat the trust as two real estate mortgage investment conduits (REMICs) for federal income tax purposes.