Huntington National Bank 2011 Annual Report Download - page 95

Table 35 — Mortgage Loan Repurchase Statistics
Year Ended December 31,
2011 2010
(dollar amounts in thousands)
Number of loans sold ......................................... 22,146 28,744
Amount of loans sold (UPB) .................................... $3,170,903 $4,309,247
Number of loans repurchased(1) ................................. 128 399
Amount of loans repurchased (UPB)(1) ........................... $ 19,442 $ 61,754
Number of claims received ..................................... 445 472
Successful dispute rate(2) ...................................... 50% 31%
Number of make whole payments(3) ............................. 72 95
Amount of make whole payments(3) ............................. $ 5,553 $ 7,679
(1) Loans repurchased are loans that fail to meet the purchaser’s terms.
(2) Successful disputes are a percent of close out requests.
(3) Make whole payments are payments to reimburse for losses on foreclosed properties.
Foreclosure Documentation
Compared to the high volume servicers, we service a relatively low volume of residential mortgage
foreclosures, with approximately 4,200 foreclosure cases as of December 31, 2011, in states that require
foreclosures to proceed through the courts. We have reviewed our residential foreclosure process. We have not
found any evidence suggesting that any foreclosure by the Bank should not have proceeded. We have and are
strengthening our processes and controls to ensure that our foreclosure processes do not have the deficiencies
identified in the interagency review of foreclosure policies and procedures dated April 2011, of 14 federally
regulated mortgage servicers.
Compliance Risk
Financial institutions are subject to a multitude of laws, rules, and regulations emanating at both the federal
and state levels. These broad-based mandates include, but are not limited to, expectations on anti-money
laundering, lending limits, client privacy, fair lending, community reinvestment, and other important areas.
Recently, the volume and complexity of regulatory changes have added to the overall compliance risk. We have
invested in various resources to help ensure we meet expectations, and we have a team of compliance experts
dedicated to ensuring our conformance. We require training for our colleagues for several broad-based laws and
regulations. For example, all of our colleagues are expected to pass courses on anti-money laundering and
customer privacy. Those colleagues who are engaged in lending activities must also take training related to flood
disaster protection, equal credit opportunity, fair lending, and / or a variety of other courses related to the
extension of credit. We set a high standard of expectation for adherence to compliance management and seek to
continuously enhance our performance.
Capital
(This section should be read in conjunction with Significant Items 4 and 7, and Notes 12 and 14 of the Notes to
Consolidated Financial Statements.)
Capital is managed both at the Bank and on a consolidated basis. Capital levels are maintained based on
regulatory capital requirements and the economic capital required to support credit, market, liquidity, and
operational risks inherent in our business, and to provide the flexibility needed for future growth and new
business opportunities.
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