Annual report pursuant to Section 13 and 15(d)

Representations and Warranties Obligations and Corporate Guarantees (Tables)

v2.4.1.9
Representations and Warranties Obligations and Corporate Guarantees (Tables)
12 Months Ended
Dec. 31, 2014
Representations and Warranties Obligations and Corporate Guarantees [Abstract]  
Outstanding Claims by Category and Product
The table below presents unresolved repurchase claims at December 31, 2014 and 2013. The unresolved repurchase claims include only claims where the Corporation believes that the counterparty has the contractual right to submit claims. For additional information, see Private-label Securitizations and Whole-loan Sales Experience in this Note and Note 12 – Commitments and Contingencies.
 
 
 
 
Unresolved Repurchase Claims by Counterparty and Product Type
 
 
 
 
 
December 31
(Dollars in millions)
2014
 
2013
By counterparty
 

 
 

Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other (1, 2)
$
24,489

 
$
17,953

Monolines (3)
1,087

 
1,532

GSEs
59

 
170

Total gross claims
25,635

 
19,655

Duplicate claims (4)
(3,213
)
 
(961
)
Total unresolved repurchase claims by counterparty, net of duplicate claims (2)
$
22,422

 
$
18,694

By product type
 

 
 

Prime loans
$
587

 
$
623

Alt-A
2,397

 
2,259

Home equity
2,221

 
1,905

Pay option
6,294

 
5,780

Subprime
13,928

 
8,928

Other
208

 
160

Total
25,635

 
19,655

Duplicate claims (4)
(3,213
)
 
(961
)
Total unresolved repurchase claims by product type, net of duplicate claims (2)
$
22,422

 
$
18,694

(1) 
The total notional amount of unresolved repurchase claims does not include repurchase claims related to the trusts covered by the BNY Mellon Settlement.
(2) 
Includes $14.1 billion and $13.8 billion of claims based on individual file reviews and $10.4 billion and $4.1 billion of claims submitted without individual file reviews at December 31, 2014 and 2013.
(3) 
At December 31, 2014, substantially all of the unresolved monoline claims pertain to second-lien loans and are currently the subject of litigation with a single monoline insurer.
(4) 
Represents more than one claim outstanding related to a particular loan, typically as the result of bulk claims submitted without individual file reviews. The December 31, 2014 amount includes approximately $2.9 billion of duplicate claims related to private-label investors submitted without individual loan file reviews.
Rollforward of Liability for Representation and Warranties
The table below presents a rollforward of the liability for representations and warranties and corporate guarantees.
 
 
 
 
Representations and Warranties and Corporate Guarantees
 
 
 
 
(Dollars in millions)
2014
 
2013
Liability for representations and warranties and corporate guarantees, January 1
$
13,282

 
$
19,021

Additions for new sales
8

 
36

Net reductions
(1,892
)
 
(6,615
)
Provision
683

 
840

Liability for representations and warranties and corporate guarantees, December 31
$
12,081

 
$
13,282

Loan Repurchases and Indemnification Payments
 
 
 
 
 
 
 
 
 
 
 
 
Loan Repurchases and Indemnification Payments (excluding cash payments for settlements)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31
 
2014
 
2013
(Dollars in millions)
Unpaid
Principal
Balance
 
Cash Paid
for
Repurchases
 
Loss
 
Unpaid
Principal
Balance
 
Cash Paid
for
Repurchases
 
Loss
First-lien
 

 
 

 
 

 
 

 
 

 
 

Repurchases
$
211

 
$
241

 
$
79

 
$
746

 
$
784

 
$
149

Indemnification payments
624

 
233

 
233

 
661

 
383

 
383

Total first-lien
835

 
474

 
312

 
1,407

 
1,167

 
532

Home equity, indemnification payments
22

 
22

 
22

 
74

 
77

 
77

Total first-lien and home equity
$
857

 
$
496

 
$
334

 
$
1,481

 
$
1,244

 
$
609