Huntington National Bank 2013 Annual Report Download - page 71

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65
The tables below reflect activity in the representations and warranties reserve:
Table 30 - Summary of Reserve for Representations and Warranties on Mortgage Loans
Serviced for Others
Year Ended December 31,
(dollar amounts in thousands) 2013 2012 2011 2010 2009
Reserve for representations and warranties, beginning of year $ 28,588 $ 23,218 $ 20,171 5,916 $ 5,270
Assumed reserve for representations and warranties --- --- --- 7,000 ---
Reserve charges (12,513) (10,628) (8,711) (9,012) (2,516)
Provision for representations and warranties 5,952 15,998 11,758 16,267 3,162
Reserve for representations and warranties, end of year $ 22,027 $ 28,588 $ 23,218 $ 20,171 $ 5,916
Table 31 - Mortgage Loan Repurchase Statistics
Year Ended December 31,
(dollar amounts in thousands) 2013 2012 2011 2010
Number of loans sold 22,240 26,345 22,146 28,744
Amount of loans sold (UPB) $ 3,255,732 $ 4,105,243 $ 3,170,903 $ 4,309,247
Number of loans repurchased (1) 159 219 128 399
Amount of loans repurchased (UPB) (1) $ 18,102 $ 29,123 $ 19,442 $ 61,754
Number of claims received 780 666 445 472
Successful dispute rate (2) 46 % 46 % 50 % 31 %
Number of make whole payments (3) 167 167 72 95
Amount of make whole payments (3) $ 11,445 $ 9,432 $ 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.
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.