Wells Fargo Helps Nearly 93,000 Customers Through National Mortgage Settlement Programs
Wells Fargo & Co. (NYSE:WFC) reported today that as of March 31, 2013,
the company had fulfilled an estimated 90 percent of its $4.3 billion
consumer relief and refinance commitment under the National Mortgage
Settlement according to its latest scheduled report to the Office of
Mortgage Settlement Oversight. The report showed that nearly 93,000
Wells Fargo customers had received a mortgage modification, other
consumer relief option or a refinance through programs under the
settlement.
“Wells Fargo is fully committed to the National Mortgage Settlement’s
success, and sees the effort as an important complement to our overall,
ongoing efforts across the country in helping homeowners avoid
foreclosure,” said Michael DeVito, executive vice president for Default
Mortgage Servicing at Wells Fargo Home Mortgage. “The mortgage payment
relief and loan refinancings are making a meaningful difference in the
lives of the families who benefit from them.”
The company reported that its efforts under the National Mortgage
Settlement had reduced monthly payments by $959, on average, for
borrowers who had completed a modification on their first-lien mortgage
loan under the settlement program and reduced monthly principal and
interest payments by $364, on average, for borrowers who had refinanced.
The report to the monitor included national data, as well as a
state-by-state breakdown of consumer relief and refinance activities.
DeVito noted the approximately 13,000 completed mortgage modifications
and 26,000 refinanced mortgages included in the latest report for the
period covering March 2012 through March 2013 represent only a fraction
of Wells Fargo’s total foreclosure prevention and refinance activity
during that time. All told, Wells Fargo completed nearly 131,000 first-
and second-lien mortgage modifications and refinanced more than 2.4
million loans—including both settlement and non-settlement activity—over
the same 13-month period. Since the beginning of 2009, Wells Fargo has
helped an average of 800 families per day through foreclosure prevention
efforts and has refinanced approximately 5.1 million mortgage loans. The
National Mortgage Settlement Programs went into place on March 1, 2012.
A breakdown of Wells Fargo’s activity specific to the National Mortgage
Settlement appears in the table below:
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|
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|
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Program
|
|
|
Customers Helped
|
|
|
Consumer Benefit1 |
1st and 2nd lien trial and completed
modifications
|
|
|
31,0462 |
|
|
$2.2 billion in principal forgiveness2 |
Short sales and deeds-in-lieu of foreclosure
|
|
|
24,597
|
|
|
$2.3 billion in write offs of indebtedness
|
Other consumer relief activity
|
|
|
10,906
|
|
|
$226 million in write offs of indebtedness
|
1st lien refinances
|
|
|
25,981
|
|
|
$1.38 billion in total interest savings ($5,440 in average annual
interest savings for each customer refinanced)3 |
TOTAL
|
|
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92,530
|
|
|
|
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 1st lien modifications
and completed 2nd lien modifications from report to the
OMSO, plus active trial modifications in place as of March 31,
2013. Active trial modifications included are not directly
comparable to trial modifications listed in the report to the OMSO.
|
3 Reflects $5.201 billion in UPB refinanced with an
average note rate reduction of 2.72% resulting in total annual
interest savings to customers of $141 million and $1.11 billion in
total interest savings to customers over the 7.85-year anticipated
average life of the refinanced loans.
|
|
Wells Fargo implemented all of the servicing standards required under
the settlement on schedule by Oct. 2, 2012 and is working with the
monitor to assess the company’s performance on an ongoing basis.
Wells Fargo is close to fulfilling its commitment under the settlement
based on completed consumer relief activity reflected in the current
report and when currently pending activity is completed it is expected
that Wells Fargo will have exceeded its commitment.
The report’s data on refinancings 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, and 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
270,000 team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 25 on
Fortune’s 2013 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy all our customers’ financial needs and help
them succeed financially.
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