More than 70,000 Wells Fargo Customers Helped through National Mortgage
Company has fulfilled an estimated 73.5 percent of its $4.3 billion consumer
relief and refinance commitment
DES MOINES, Iowa -- February 21, 2013
Wells Fargo & Co. (NYSE:WFC) reported today that between March 1, 2012 and
Dec. 31, 2012 the company assisted more than 70,000 homeowners through
expanded modifications, other customer relief options, and refinances under
the National Mortgage Settlement. As a result, Wells Fargo has fulfilled an
estimated 73.5 percent of its $4.3billion national consumer relief and
refinance commitment and remains on track to complete its entire commitment in
the required time frames.
“Wells Fargo has continued to make steady progress toward the prompt
completion of the commitments we made as part of the National Mortgage
Settlement and to continue to address the needs of all of our customers who
are facing financial challenges and those who are seeking to refinance,” said
Michael DeVito, executive vice president for Default Mortgage Servicing at
Wells Fargo Home Mortgage. “In total, as of the end of 2012 there were nearly
842,000 Wells Fargo customers in modifications started since January 2009 and
during that time we assisted customers with more than 4.7million refinances
allowing them to take advantage of lower interest rates.”
“It’s clear that the expanded modification and refinance programs are
providing meaningful relief and payment reductions for our customers,” added
DeVito. “Those who have obtained a modification on their first-lien mortgage
loan have reduced their monthly payments by an average of nearly 44 percent
and, on average, borrowers who have refinanced have seen principal and
interest payment lowered by approximately $420 per month.”
Details on the expanded modifications, other consumer relief options and
refinances under the settlement were included in the latest 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 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 22,926^2 $1.7 billion in principal
completed modifications forgiveness^2
Short sales and deeds-in-lieu 19,238 $1.8 billion in write offs of
of foreclosure indebtedness
Other consumer relief 5,918 $39 million in write offs of
$891 million in total
interest savings ($5,128 in
1^st lien refinances 22,143 average annual
interest savings for each
^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 Dec. 31, 2012. Active trial modifications included are not
directly comparable to trial modifications listed in the report to the OMSO.
^3 Reflects $3.998 billion in UPB refinanced with an average note rate
reduction of 2.84% resulting in total annual interest savings to customers of
$114 million and $891 million in total interest savings to customers over the
7.85-year anticipated average life of the refinanced loans.
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 had completed the refinances
necessary to satisfy its commitment under the refinance program as of Dec. 31,
2012. In addition, the company expects to meet its commitment under the
consumer relief programs within the required timeframes. While Wells Fargo
will continue to process refinance applications submitted through the expanded
program in the pipeline, the company has stopped accepting new refinance
applications under this program. The progress to date reflected in the report
regarding the refinance program only includes completed refinances; the
estimated number of customers expected to be refinanced and the estimated
financial impact of the entire expanded program is consistent with what the
company has previously disclosed.
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 & Co.
Tom Goyda, 636-594-2259 (Media)
Jim Rowe, 415-396-8216 (Investors)
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