More Than 45,000 Wells Fargo Customers Helped through National Mortgage
An estimated 52 percent of the company’s $4.3 billion consumer relief and
refinance commitment has been fulfilled
DES MOINES, Iowa -- November 19, 2012
Wells Fargo & Co. (NYSE:WFC) reported today that between March 1, 2012 and
Sept. 30, 2012 the company assisted more than 45,000 homeowners through
expanded modifications, other customer relief options, and refinances under
the National Mortgage Settlement. As a result, Wells Fargo has fulfilled an
estimated 52 percent of its $4.3billion national consumer relief and
refinance commitment in the first seven months of implementation and remains
on track to complete its entire commitment in the required time frames.
“Wells Fargo has made significant progress toward the fulfillment of its
commitments under the National Mortgage Settlement while continuing to serve
all of our customers who need assistance or are looking to refinance,” said
Michael DeVito, executive vice president for Default Mortgage Servicing at
Wells Fargo Home Mortgage. “Overall, we currently have more than 812,000
customers benefiting from modifications started since January 2009 and during
that time also have completed more than 4.4million refinances allowing
borrowers to take advantage of lower interest rates.”
Details on the expanded modifications, other consumer relief options,
refinances and national servicing standards under the settlement were included
in the first scheduled report to the Office of Mortgage Settlement Oversight.
The report to the monitor included national data, as well as a state-by-state
breakdown of consumer relief and refinance activities.
The company also indicated that it implemented all of the servicing standards
required under the settlement on schedule by Oct. 2, 2012, and was performing
appropriately on the nine metrics included in the current report.
“Implementation of all of the national servicing standards is a significant
step forward in our ongoing efforts to restore confidence in the mortgage
servicing industry,” DeVito stated. “Thanks to exceptional work by more than
1,000 team members, we’ve embraced a new way of operating the business that
improves our operational effectiveness, creates greater transparency and
enhances our risk management.”
The report released by the monitor can be viewed here. National consumer
relief and refinance program totals appear in the table below:
Program Customers Helped Consumer Benefit^1
1^st and 2^nd lien trial
and completed 12,430^2 $1.1 billion in principal
Short sales and
deeds-in-lieu of 12,872 $1.3 billion in write offs
Other consumer relief 4,300 $33 million in write offs
activity of indebtedness
$588 million in total
($4,848 in average annual
1^st lien refinances 15,453 interest
savings for each customer
^1 Dollar amounts include a portion of the gross consumer benefit provided and
do not reflect the amount of credit toward Wells Fargo’s financial commitment.
The credit applied to the commitment will be determined by a formula that
takes into account the amounts here as well as other factors.
^2 Includes completed 1^st lien modifications and completed 2^nd lien
modifications from interim report to the OMSO, plus active trial modifications
in place as of Sept. 30, 2012. Active trial modifications included are not
directly comparable to trial modifications listed in the report to the OMSO.
^3 Reflects $2.9 billion in UPB refinanced with an average note rate reduction
of 2.63% resulting in total annual interest savings to customers of $75
million and $588 million in total interest savings to customers over the
7.85-year anticipated average life of the refinanced loans.
“The expanded modification and refinance programs clearly are providing
meaningful relief and payment reductions to borrowers,” added DeVito. “The
first-lien modifications started and completed to date have reduced monthly
payments, on average, by more than 43 percent and the refinances completed
have resulted in average principal and interest payment reductions of more
than $400 per month.”
The geographic distribution of Wells Fargo’s consumer relief and refinance
activities remains consistent with the distribution of its portfolio and also
reflects the fact that the financial commitments under the settlement are
focused on borrowers who are in a negative equity position.
The results in the report indicate Wells Fargo is on track to complete the
number of refinances necessary to satisfy the entire credit in the first 12
months of offering the refinance program, and to meet its commitments on the
modification and other consumer relief programs within the required
timeframes, as the company had estimated in previous disclosures. The progress
to date reflected in the report regarding the refinance program is consistent
with what the company has previously disclosed in terms of the number of
customers expected to be refinanced through the program and the financial
About Wells Fargo
Wells Fargo Home Mortgage is the nation’s leading mortgage lender and services
one of every six mortgage loans in the nation. A division of Wells Fargo Bank,
N.A., it has a national presence in mortgage stores and banking stores, and
also serves the home financing needs of customers nationwide through its call
centers, Internet presence and third-party production channels. Wells Fargo
Bank, N.A. is an equal housing lender.
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified,
community-based financial services company with $1.4 trillion in assets.
Founded in 1852 and headquartered in San Francisco, Wells Fargo provides
banking, insurance, investments, mortgage, and consumer and commercial finance
through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com),
and has offices in more than 35 countries to support the bank’s customers who
conduct business in the global economy. With more than 265,000 team members,
Wells Fargo serves one in three households in the United States. Wells Fargo &
Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest
corporations. Wells Fargo’s vision is to satisfy all our customers’ financial
needs and help them succeed financially.
Wells Fargo & Company
Tom Goyda, 515-213-5565
Jim Rowe, 415-396-8216
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