Wells Fargo 2008 Annual Report Download - page 114

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
(in millions) December 31, 2008
Total Debt and Servicing Derivatives Other Total
QSPE equity assets commit-
assets(1) interests(2) ments and
guarantees
Carrying value – asset (liability)
Residential mortgage loan securitizations $1,144,775 $17,469 $12,951 $ 30 $ (511) $29,939
Commercial mortgage securitizations 355,267 1,452 1,098 524 (14) 3,060
Auto loan securitizations 4,133 72 — 43 — 115
Student loan securitizations 2,765 76 57 — — 133
Other 11,877 74 — (3) — 71
Total $1,518,817 $19,143 $14,106 $ 594 $ (525) $33,318
Maximum exposure to loss(3)
Residential mortgage loan securitizations $17,469 $12,951 $ 300 $ 718 $31,438
Commercial mortgage securitizations 1,452 1,098 524 3,302 6,376
Auto loan securitizations 72 — 43 — 115
Student loan securitizations 76 57 — — 133
Other 74 — 1,465 37 1,576
Total $19,143 $14,106 $2,332 $4,057 $39,638
(1) Represents the remaining principal balance of assets held by QSPEs using the most current information available.
(2) Excludes certain debt securities held related to loans serviced for FNMA, FHLMC and GNMA.
(3) Represents the carrying amount of our continuing involvement plus remaining undrawn liquidity and lending commitments, notional amount of net written derivative
contracts, and notional amount of other commitments and guarantees.
(in millions) Year ended December 31,
2008 2007
Mortgage Other Mortgage Other
loans financial loans financial
assets assets
Sales proceeds from securitizations (1) $212,770 $ — $38,971 $—
Servicing fees (1) 3,128 — 300 —
Other interests held 1,509 131 496 6
Purchases of delinquent assets 36 — ——
Net servicing advances 61 — 22 —
(1) Represents cash flow data for all loans securitized in 2008 and 2007. For 2007, cash flow data excluded loans securitized through FNMA and FHLMC and those loans we
continued to service, but for which we had no other continuing involvement.
We recognized net gains of $10 million from sales of
financial assets in securitizations in 2007 (none in 2008).
Transactions with QSPEs
We use QSPEs to securitize consumer and commercial real
estate loans and other types of financial assets, including
student loans, auto loans and municipal bonds. We typically
retain the servicing rights from these sales and may continue
to hold other beneficial interests in QSPEs. We may also
provide liquidity to investors in the beneficial interests and
credit enhancements in the form of standby letters of credit.
Through these securitizations we may be exposed to liability
under limited amounts of recourse as well as standard
representations and warranties we make to purchasers and
issuers. The amount recorded for this liability is included in
other commitments and guarantees in the following table.
A summary of our involvements with QSPEs is as follows:
Additionally, we had the following cash flows with our
securitization trusts.