Huntington National Bank 2012 Annual Report Download - page 76

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68
The tables below reflect activity in the representations and warranties reserve:
Table 33 - Summary of Reserve for Representations and Warranties on Mortgage Loans Serviced for Others
Year Ended December 31,
(dollar amounts in thousands) 2012 2011 2010
Reserve for representations and warranties, beginning of year $ 23,218 $ 20,171 $ 5,916
Assumed reserve for representations and warranties --- --- 7,000
Reserve charges (10,628) (8,711) (9,012)
Provision for representations and warranties 15,998 11,758 16,267
Reserve for representations and warranties, end of year $ 28,588 $ 23,218 $ 20,171
Table 34 - Mortgage Loan Repurchase Statistics
Year Ended December 31,
(dollar amounts in thousands) 2012 2011
N
umber of loans sol
d
26,345 22,146
Amount of loans sold (UPB) $ 4,105,243 $ 3,170,903
N
umber of loans repurchased (1) 219 128
Amount of loans repurchased (UPB) (1) $ 29,123 $ 19,442
N
umber of claims receive
d
666 445
Successful dispute rate (2) 46 % 50 %
N
umber of make whole payments (3) 167 72
Amount of make whole payments (3) $ 9,432 $ 5,553
(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. We have
reviewed our residential foreclosure process. We have not found evidence of financial injury to any borrowers from any foreclosure by
the Bank that should not have proceeded. We continuously review our processes and controls to ensure that our foreclosure processes
are appropriate.
Compliance Risk
Financial institutions are subject to several laws, rules, and regulations at both the federal and state levels. These broad-based
mandates include, but are not limited to, expectations relating to anti-money laundering, lending limits, client privacy, fair lending,
and community reinvestment. Additionally, the volume and complexity of recent regulatory changes have increased our overall
compliance risk. As such, we utilize various resources to help ensure expectations are met, including a team of compliance experts
dedicated to ensuring our conformance with all applicable laws, rules, and regulations. Our colleagues receive training for several
broad-based laws and regulations including, but not limited to, anti-money laundering and customer privacy. Additionally, colleagues
engaged in lending activities receive training for laws and regulations related to flood disaster protection, equal credit opportunity, fair
lending, and / or 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.