DES MOINES - February 21, 2013
Wells Fargo & Co. (NYSE:WFC) reported today that between March 1, 2012 and Dec. 31, 2012 the company assisted more than 70,000 homeowners through expanded modifications, other customer relief options, and refinances under the National Mortgage Settlement. As a result, Wells Fargo has fulfilled an estimated 73.5 percent of its $4.3 billion national consumer relief and refinance commitment and remains on track to complete its entire commitment in the required time frames.
“Wells Fargo has continued to make steady progress toward the prompt completion of the commitments we made as part of the National Mortgage Settlement and to continue to address the needs of all of our customers who are facing financial challenges and those who are seeking to refinance,” said Michael DeVito, executive vice president for Default Mortgage Servicing at Wells Fargo Home Mortgage. “In total, as of the end of 2012 there were nearly 842,000 Wells Fargo customers in modifications started since January 2009 and during that time we assisted customers with more than 4.7 million refinances allowing them to take advantage of lower interest rates.”
“It’s clear that the expanded modification and refinance programs are providing meaningful relief and payment reductions for our customers,” added DeVito. “Those who have obtained a modification on their first-lien mortgage loan have reduced their monthly payments by an average of nearly 44 percent and, on average, borrowers who have refinanced have seen principal and interest payment lowered by approximately $420 per month.”
Details on the expanded modifications, other consumer relief options and refinances under the settlement were included in the latest scheduled report to the Office of Mortgage Settlement Oversight. The report to the monitor included national data, as well as a state-by-state breakdown of consumer relief and refinance activities.
The report released by the monitor can be viewed here. National consumer relief and refinance program totals appear in the table below:
National consumer relief and refinance program totals
|Program||Customers Helped||Consumer Benefit1|
|1st and 2nd lien trial and completed modifications||22,9262||$1.7 billion in principal forgiveness2|
|Short sales and deeds-in-lieu of foreclosure||19,238||$1.8 billion in write offs of indebtedness|
|Other consumer relief activity||5,918||$39 million in write offs of indebtedness|
|1st lien refinances||22,143||$891 million in total interest savings ($5,128 in average annual interest savings for each customer refinanced)3|
1Dollar amounts include a portion of the gross consumer benefit provided and do not reflect the amount of credit toward Wells Fargo’s financial commitment. The credit applied to the commitment will be determined by a formula that takes into account the amounts here as well as other factors.
2 Includes completed 1st lien modifications and completed 2nd lien modifications from interim report to the OMSO, plus active trial modifications in place as of Dec. 31, 2012. Active trial modifications included are not directly comparable to trial modifications listed in the report to the OMSO.
3 Reflects $3.998 billion in UPB refinanced with an average note rate reduction of 2.84% resulting in total annual interest savings to customers of $114 million and $891 million in total interest savings to customers over the 7.85-year anticipated average life of the refinanced loans.
The geographic distribution of Wells Fargo’s consumer relief and refinance activities remains consistent with the distribution of its portfolio and also reflects the fact that the financial commitments under the settlement are focused on borrowers who are in a negative equity position.
The results in the report indicate Wells Fargo had completed the refinances necessary to satisfy its commitment under the refinance program as of Dec. 31, 2012. In addition, the company expects to meet its commitment under the consumer relief programs within the required timeframes. While Wells Fargo will continue to process refinance applications submitted through the expanded program in the pipeline, the company has stopped accepting new refinance applications under this program. The progress to date reflected in the report regarding the refinance program only includes completed refinances; the estimated number of customers expected to be refinanced and the estimated financial impact of the entire expanded program is consistent with what the company has previously disclosed.
About Wells Fargo
Wells Fargo Home Mortgage is the nation’s leading mortgage lender and services one of every six mortgage loans in the nation. A division of Wells Fargo Bank, N.A., it has a national presence in mortgage stores and banking stores, and also serves the home financing needs of customers nationwide through its call centers, Internet presence and third-party production channels. Wells Fargo Bank, N.A. is an equal housing lender.
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.4 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.