Annual report pursuant to Section 13 and 15(d)

Representations and Warranties Obligations and Corporate Guarantees (Tables)

v3.8.0.1
Representations and Warranties Obligations and Corporate Guarantees (Tables)
 12 Months Ended
Dec. 31, 2017
Representations and Warranties Obligations and Corporate Guarantees [Abstract]  
Outstanding Claims by Category and Product
The table below presents unresolved repurchase claims at December 31, 2017 and 2016. The unresolved repurchase claims include only claims where the Corporation believes that the counterparty has the contractual right to submit claims. The unresolved repurchase claims predominantly relate to subprime and pay option first-lien loans and home equity loans originated primarily between 2004 and 2008. For more information, see Private-label Securitizations and Whole-loan Sales Experience in this Note and Note 12 – Commitments and Contingencies.
 
 
 
 
Unresolved Repurchase Claims by Counterparty, Net of Duplicate Claims
 
 
 
 
 
December 31
(Dollars in millions)
2017
 
2016
By counterparty
 

 
 

Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other (1)
$
16,064

 
$
16,685

Monolines
1,565

 
1,583

GSEs
5

 
9

Total unresolved repurchase claims by counterparty, net of duplicate claims
$
17,634

 
$
18,277

(1) 
Includes $11.4 billion and $11.9 billion of claims based on individual file reviews and $4.7 billion and $4.8 billion of claims submitted without individual file reviews at December 31, 2017 and 2016.
Rollforward of Liability for Representation and Warranties
The table below presents a rollforward of the reserve for representations and warranties and corporate guarantees.
 
 
 
 
Representations and Warranties and Corporate Guarantees
 
 
(Dollars in millions)
2017
 
2016
Reserve for representations and warranties and corporate guarantees, January 1
$
2,339

 
$
11,326

Additions for new sales
4

 
4

Payments (1)
(814
)
 
(9,097
)
Provision
393

 
106

Reserve for representations and warranties and corporate guarantees, December 31
$
1,922

 
$
2,339


(1) 
In February 2016, the Corporation made an $8.5 billion settlement payment as part of the settlement with BNY Mellon