| Outstanding Claims By Category And Product |
The table below presents unresolved repurchase claims at September 30, 2014 and December 31, 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 10 – Commitments and Contingencies.
|
|
|
|
|
|
|
|
|
Unresolved Repurchase Claims by Counterparty and Product Type |
|
|
|
(Dollars in millions) |
September 30
2014 |
|
December 31
2013 |
By counterparty |
|
|
|
Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other (1, 2, 3)
|
$ |
23,012 |
|
|
$ |
17,953 |
|
Monolines (4)
|
1,087 |
|
|
1,532 |
|
GSEs |
70 |
|
|
170 |
|
Total unresolved repurchase claims by counterparty |
$ |
24,169 |
|
|
$ |
19,655 |
|
By product type |
|
|
|
Prime loans |
$ |
592 |
|
|
$ |
623 |
|
Alt-A |
2,351 |
|
|
2,259 |
|
Home equity |
1,629 |
|
|
1,905 |
|
Pay option |
6,324 |
|
|
5,780 |
|
Subprime |
13,076 |
|
|
8,928 |
|
Other |
197 |
|
|
160 |
|
Total unresolved repurchase claims by product type |
$ |
24,169 |
|
|
$ |
19,655 |
|
|
|
(1) |
At both September 30, 2014 and December 31, 2013, unresolved repurchase claims did not include repurchase demands of $1.2 billion where the Corporation believes that these demands are procedurally or substantively invalid as noted on page 201.
|
|
|
(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 $14.0 billion and $13.8 billion of claims based on individual file reviews and $9.0 billion and $4.1 billion of claims submitted without individual file reviews at September 30, 2014 and December 31, 2013.
|
|
|
(4) |
At September 30, 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.
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|
| 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 September 30 |
|
Nine Months Ended September 30 |
(Dollars in millions) |
2014 |
|
2013 |
|
2014 |
|
2013 |
Liability for representations and warranties and corporate guarantees, beginning of period |
$ |
12,084 |
|
|
$ |
14,020 |
|
|
$ |
13,282 |
|
|
$ |
19,021 |
|
Additions for new sales |
2 |
|
|
9 |
|
|
7 |
|
|
31 |
|
Net reductions |
(305 |
) |
|
(236 |
) |
|
(1,773 |
) |
|
(5,706 |
) |
Provision |
167 |
|
|
323 |
|
|
432 |
|
|
770 |
|
Liability for representations and warranties and corporate guarantees, September 30 |
$ |
11,948 |
|
|
$ |
14,116 |
|
|
$ |
11,948 |
|
|
$ |
14,116 |
|
|
| Loan Repurchases And Indemnification Payments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Repurchases and Indemnification Payments (excluding cash payments for settlements) |
|
Three Months Ended September 30 |
|
2014 |
|
2013 |
(Dollars in millions) |
Unpaid
Principal
Balance
|
|
Cash Paid
for
Repurchases
|
|
Loss |
|
Unpaid
Principal
Balance
|
|
Cash Paid
for
Repurchases
|
|
Loss |
First-lien |
|
|
|
|
|
|
|
|
|
|
|
Repurchases |
$ |
56 |
|
|
$ |
65 |
|
|
$ |
22 |
|
|
$ |
128 |
|
|
$ |
136 |
|
|
$ |
27 |
|
Indemnification payments |
194 |
|
|
44 |
|
|
44 |
|
|
190 |
|
|
115 |
|
|
115 |
|
Total first-lien |
250 |
|
|
109 |
|
|
66 |
|
|
318 |
|
|
251 |
|
|
142 |
|
Home equity, indemnification payments |
3 |
|
|
3 |
|
|
3 |
|
|
25 |
|
|
26 |
|
|
26 |
|
Total first-lien and home equity |
$ |
253 |
|
|
$ |
112 |
|
|
$ |
69 |
|
|
$ |
343 |
|
|
$ |
277 |
|
|
$ |
168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30 |
|
2014 |
|
2013 |
First-lien |
|
|
|
|
|
|
|
|
|
|
|
Repurchases |
$ |
160 |
|
|
$ |
179 |
|
|
$ |
54 |
|
|
$ |
661 |
|
|
$ |
693 |
|
|
$ |
124 |
|
Indemnification payments |
437 |
|
|
152 |
|
|
152 |
|
|
481 |
|
|
291 |
|
|
291 |
|
Total first-lien |
597 |
|
|
331 |
|
|
206 |
|
|
1,142 |
|
|
984 |
|
|
415 |
|
Home equity, indemnification payments |
17 |
|
|
17 |
|
|
17 |
|
|
49 |
|
|
51 |
|
|
51 |
|
Total first-lien and home equity |
$ |
614 |
|
|
$ |
348 |
|
|
$ |
223 |
|
|
$ |
1,191 |
|
|
$ |
1,035 |
|
|
$ |
466 |
|
|