DBRS Rates Wells Fargo Mortgage Loan 2012-RR1 Trust, Resecuritization Pass-Through Certificates, Series 2012-RR1

DBRS, Inc. (DBRS) has today assigned the following ratings to the Resecuritization Trust Securities issued by Wells Fargo Mortgage Loan 2012-RR1 Trust (the Trust).

-- $186.7 million Class A-1 rated at AAA (sf)
-- $19.9 million Class A-2 rated at AA (sf)
-- $18.8 million Class A-3 rated at A (sf)

This resecuritization trust consists of 15 underlying seasoned senior residential mortgage-backed securities (RMBS). The AAA (sf) rating on the Class A-1 Certificates reflects the 56.9% credit enhancement provided by subordination. The AA (sf) and A (sf) ratings reflect 52.3% and 48.0% of credit enhancement, respectively. The ratings also reflect the quality of the underlying assets.

The ratings assigned to the above securities address (i) the likelihood of the receipt by certificate holders of all principal distributions to which such certificate holders are entitled and (ii) likelihood of the receipt by certificate holders of the amount of interest actually received by the Issuing Entity (to the extent payable to each class in accordance with the priorities described in the operative documents as such interest received by the Issuing Entity may have been reduced, and as such interest entitlement may be further reduced by the allocation of Extraordinary Trust Expenses). The ratings do not address the frequency and timing of principal prepayments on the mortgage loans or the corresponding effect on the yield to certificate holders. The ratings do not address the likelihood or effect of any Extraordinary Trust Expenses that the trust might incur or the receipt by holders of the Class A-1 certificates of any Class A-1 Unpaid Interest Amount.

Other than the specified classes above, DBRS does not rate any other securities in this transaction.

Interest and principal payments on the securities will be made two business days after the 25th of each month, commencing in March 2012. Interest will be distributed on a sequential basis to the securities. Principal will be distributed on a sequential basis to the securities, in the order of priority specified in the private placement memorandum, until the principal balances thereof are reduced to zero.

Any losses realized from the underlying securities will be allocated in a reverse sequential order to the certificates.

This resecuritization is backed by 15 seasoned senior RMBS, represented by 13 real estate mortgage investment conduits (REMICs). The REMICs are backed by pools of prime and Alt-A, fixed- and adjustable-rate, first-lien, one- to four-family residential mortgages.

Each DBRS-rated group is a resecuritization of one seasoned senior RMBS, represented by one real estate mortgage investment conduit (REMIC). The REMICs are backed by pools of seasoned, prime or Alt-A, first lien, fixed- or adjustable-rate, one- to four-family residential mortgages.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is RMBS Insight: U.S. Residential Mortgage-Backed Securities Loss Model and Rating Methodology, which can be found on our website under Methodologies.

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link or by contacting us at info@dbrs.com.