| 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.
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|
| Rollforward of Liability for Representation and Warranties |
The table below presents a rollforward of the liability for representations and warranties and corporate guarantees.
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|
|
|
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 |
|
|