DES MOINES - August 22, 2013
Wells Fargo & Co. (NYSE:WFC) announced today that the company has reported consumer relief and refinance credits totaling $4.4 billion as of June 30, 2013 to the Office of Mortgage Settlement Oversight. Under the terms of National Mortgage Settlement, Wells Fargo committed to provide $4.3 billion in consumer relief and refinances for its customers.
The consumer relief and refinance efforts reflected in the monitor’s latest report represent only a fraction of Wells Fargo’s total foreclosure prevention and refinance activity since 2009. Wells Fargo had more than 876,000 active trial and completed modifications in place and from January 2009 through June 2013 completed 5.4 million refinances. The 123,000 modifications, other consumer relief options and refinances for which the company will request credit under the settlement represent slightly less than 2 percent of its total activity during that same period.
“The National Mortgage Settlement programs built on our prior consumer relief and refinance efforts, and we will continue our strong commitment to helping customers who face payment challenges or who want to refinance,” said Michael DeVito, executive vice president for Servicing at Wells Fargo Home Mortgage. “That includes utilizing principal reduction through modifications where appropriate for customers facing financial hardships when they have Wells Fargo-owned loans that we also service.”
Wells Fargo’s efforts under the National Mortgage Settlement programs reduced monthly payments by $948, on average, for borrowers who had completed a modification on their first-lien mortgage loan and reduced monthly principal and interest payments by $364, on average, for borrowers who had refinanced.
The report from the Office of Mortgage Settlement Oversight included national data, as well as a state-by-state breakdown of consumer relief and refinance activities. A breakdown of Wells Fargo’s activity specific to the National Mortgage Settlement appears in the table below:
|Program||Customers Helped||Consumer Benefit¹|
|1st and 2nd lien completed modifications and 2nd lien extinguishments||47,927||$3.3 billion in principal forgiveness|
|Short sales and deeds-in-lieu of foreclosure||32,833||$3.0 billion in write offs of indebtedness|
|Other consumer relief activity||16,031||$444 million in write offs of indebtedness|
|1st lien refinances||25,981||$1.38 billion in total interest savings ($5,440 in average annual interest savings for each customer refinanced) ²|
|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.
²Reflects $5.201 billion in UPB refinanced with an average note rate reduction of 2.72% resulting in total annual interest savings to customers of $141 million and $1.11 billion in total interest savings to customers over the 7.85-year anticipated average life of the refinanced loans.
Wells Fargo implemented all of the servicing standards required under the settlement on schedule by Oct. 2, 2012. The company is working with the monitor to assess the company’s performance on an ongoing basis and continues efforts to improve its service to customers. For the third reporting period, ending March 31, 2013, the monitor has indicated that the company will meet all 28 of the metrics on which it will be measured.
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, and 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 270,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2013 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.