| Outstanding Claims By Category And Product |
The table below presents unresolved repurchase claims at June 30, 2015 and December 31, 2014. 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.
|
|
|
|
|
|
|
|
|
Unresolved Repurchase Claims by Counterparty and Product Type |
|
|
|
(Dollars in millions) |
June 30
2015 |
|
December 31 2014 (1)
|
By counterparty |
|
|
|
Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other (2, 3)
|
$ |
19,431 |
|
|
$ |
24,489 |
|
Monolines (4)
|
1,631 |
|
|
1,546 |
|
GSEs |
31 |
|
|
59 |
|
Total gross claims (3)
|
21,093 |
|
|
26,094 |
|
Duplicate claims (5)
|
(2,622 |
) |
|
(3,248 |
) |
Total unresolved repurchase claims by counterparty, net of duplicate claims |
$ |
18,471 |
|
|
$ |
22,846 |
|
By product type |
|
|
|
Prime loans |
$ |
200 |
|
|
$ |
587 |
|
Alt-A |
1,208 |
|
|
2,397 |
|
Home equity |
2,195 |
|
|
2,485 |
|
Pay option |
4,986 |
|
|
6,294 |
|
Subprime |
12,495 |
|
|
14,121 |
|
Other |
9 |
|
|
210 |
|
Total (3)
|
21,093 |
|
|
26,094 |
|
Duplicate claims (5)
|
(2,622 |
) |
|
(3,248 |
) |
Total unresolved repurchase claims by product type, net of duplicate claims |
$ |
18,471 |
|
|
$ |
22,846 |
|
|
|
(1) |
The December 31, 2014 amounts have been updated to reflect additional claims submitted from a single monoline, currently pursuing litigation, served in the fourth quarter of 2014, and addressed by the Corporation in 2015 pursuant to an existing litigation schedule. For more information on bond insurance litigation, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation's 2014 Annual Report on Form 10-K.
|
|
|
(2) |
The total notional amount of unresolved repurchase claims does not include repurchase claims related to the trusts covered by the BNY Mellon Settlement. |
|
|
(3) |
Includes $12.0 billion and $14.1 billion of claims based on individual file reviews and $7.4 billion and $10.4 billion of claims submitted without individual file reviews at June 30, 2015 and December 31, 2014.
|
|
|
(4) |
At June 30, 2015, substantially all of the unresolved monoline claims are currently the subject of litigation with a single monoline insurer and predominately pertain to second-lien loans.
|
|
|
(5) |
Represents more than one claim outstanding related to a particular loan, typically as the result of bulk claims submitted without individual file reviews. The June 30, 2015 and December 31, 2014 amounts include approximately $2.5 billion and $2.9 billion of duplicate claims related to private-label investors submitted without individual loan file reviews.
|
|
| Rollforward Of Liability For Representations And Warranties |
The table below presents a rollforward of the liability for representations and warranties and corporate guarantees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Representations and Warranties and Corporate Guarantees |
|
|
|
|
|
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
(Dollars in millions) |
2015 |
|
2014 |
|
2015 |
|
2014 |
Liability for representations and warranties and corporate guarantees, beginning of period |
$ |
11,992 |
|
|
$ |
13,411 |
|
|
$ |
12,081 |
|
|
$ |
13,282 |
|
Additions for new sales |
2 |
|
|
2 |
|
|
3 |
|
|
5 |
|
Net reductions |
(233 |
) |
|
(1,417 |
) |
|
(407 |
) |
|
(1,469 |
) |
Provision (benefit) |
(205 |
) |
|
88 |
|
|
(121 |
) |
|
266 |
|
Liability for representations and warranties and corporate guarantees, June 30 |
$ |
11,556 |
|
|
$ |
12,084 |
|
|
$ |
11,556 |
|
|
$ |
12,084 |
|
|