Wells Fargo 2011 Annual Report Download - page 174
Download and view the complete annual report
Please find page 174 of the 2011 Wells Fargo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164 -
165 -
166 -
167 -
168 -
169 -
170 -
171 -
172 -
173 -
174 -
175 -
176 -
177 -
178 -
179 -
180 -
181 -
182 -
183 -
184 -
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
 |
 |
Note 9: Mortgage Banking Activities (continued)
We present the components of our managed servicing
portfolio in the following table at unpaid principal balance for
loans serviced and subserviced for others and at book value for
owned loans serviced.
December 31,
(in billions)
2011
2010
Residential mortgage servicing:
Serviced for others
$
1,456
1,429
Owned loans serviced
358
371
Subservicing
8
9
Total residential servicing
1,822
1,809
Commercial mortgage servicing:
Serviced for others
398
408
Owned loans serviced
106
99
Subservicing
14
13
Total commercial servicing
518
520
Total managed servicing portfolio
$
2,340
2,329
Total serviced for others
$
1,854
1,837
Ratio of MSRs to related loans serviced for others
0.76
%
0.86
The components of mortgage banking noninterest income were:
Year ended December 31,
(in millions)
2011
2010
2009
Servicing income, net:
Servicing fees:
Contractually specified servicing fees
$
4,611
4,566
4,473
Late charges
298
360
330
Ancillary fees
354
434
287
Unreimbursed direct servicing costs (1)
(1,119)
(763)
(914)
Net servicing fees
4,144
4,597
4,176
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)
(3,680)
(2,957)
(1,534)
Other changes in fair value (3)
(2,141)
(2,554)
(3,436)
Total changes in fair value of MSRs carried at fair value
(5,821)
(5,511)
(4,970)
Amortization
(264)
(228)
(264)
Provision for MSRs in excess of fair value
(34)
(3)
-
Net derivative gains from economic hedges (4)
5,241
4,485
6,849
Total servicing income, net
3,266
3,340
5,791
Net gains on mortgage loan origination/sales activities
4,566
6,397
6,237
Total mortgage banking noninterest income
$
7,832
9,737
12,028
Market-related valuation changes to MSRs, net of hedge results (2) + (4)
$
1,561
1,528
5,315
(1) Primarily associated with foreclosure expenses and other interest costs.
(2) Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates and costs to service, including delinquency and
foreclosure costs.
(3) Represents changes due to collection/realization of expected cash flows over time.
(4) Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs. See Note 16 – Free-Standing Derivatives for
additional discussion and detail.
172