Wells Fargo Reports on National Mortgage Settlement Activity, Provides $4.4 billion

News Release

Company reinforces ongoing focus on consumer relief and refinancing; Reports more than 876,000 modifications in place and 5.4 million refinances since 2009

Wells Fargo & Co. announced today that the company has reported consumer relief and refinance credits totaling $4.4 billion as of June 30, 2013 to the Office of Mortgage Settlement Oversight. Under the terms of National Mortgage Settlement, Wells Fargo committed to provide $4.3 billion in consumer relief and refinances for its customers.

The consumer relief and refinance efforts reflected in the monitor’s latest report represent only a fraction of Wells Fargo’s total foreclosure prevention and refinance activity since 2009. Wells Fargo had more than 876,000 active trial and completed modifications in place and from January 2009 through June 2013 completed 5.4 million refinances. The 123,000 modifications, other consumer relief options and refinances for which the company will request credit under the settlement represent slightly less than 2 percent of its total activity during that same period.

“The National Mortgage Settlement programs built on our prior consumer relief and refinance efforts, and we will continue our strong commitment to helping customers who face payment challenges or who want to refinance,” said Michael DeVito, executive vice president for Servicing at Wells Fargo Home Mortgage. “That includes utilizing principal reduction through modifications where appropriate for customers facing financial hardships when they have Wells Fargo-owned loans that we also service.”

Wells Fargo’s efforts under the National Mortgage Settlement programs reduced monthly payments by $948, on average, for borrowers who had completed a modification on their first-lien mortgage loan and reduced monthly principal and interest payments by $364, on average, for borrowers who had refinanced.

The report from the Office of Mortgage Settlement Oversight included national data, as well as a state-by-state breakdown of consumer relief and refinance activities. A breakdown of Wells Fargo’s activity specific to the National Mortgage Settlement appears in the table below:

1st and 2nd lien completed modifications and 2nd lien extinguishments equaled 47,927 and $3.3 billion in principal forgiveness. Short sales and deeds-in-lieu of foreclosure equaled 32,833 worth $3.0 billion in write offs of indebtedness. Other consumer relief activity includes 16,031 worth $444 million in write offs of indebtedness. Also Wells included 1st lien refinances of 25,981 worth $1.38 billion in total interest savings ($5,440 in average annual interest savings for each customer refinanced). The Totla number of homeowners helped was 122,772

Wells Fargo implemented all of the servicing standards required under the settlement on schedule by Oct. 2, 2012. The company is working with the monitor to assess the company’s performance on an ongoing basis and continues efforts to improve its service to customers. For the third reporting period, ending March 31, 2013, the monitor has indicated that the company will meet all 28 of the metrics on which it will be measured.