Representations and Warranties Obligations and Corporate Guarantees (Tables)
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9 Months Ended |
Sep. 30, 2011 |
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| Representations and Warranties Obligations and Corporate Guarantees [Abstract] |
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| Outstanding Claims by Category and Product |
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Outstanding Claims by Counterparty and Product Type |
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(Dollars in millions) |
September 30
2011 |
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December 31
2010 |
By counterparty (1)
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GSEs |
$ |
4,721 |
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$ |
2,821 |
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Monolines |
3,058 |
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|
4,678 |
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Whole loan and private-label securitization investors and other (2)
|
3,893 |
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|
3,188 |
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Total outstanding claims by counterparty |
$ |
11,672 |
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$ |
10,687 |
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By product type (1)
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Prime loans |
$ |
3,453 |
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$ |
2,040 |
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Alt-A |
1,714 |
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|
1,190 |
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Home equity |
2,861 |
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|
3,658 |
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Pay option |
2,771 |
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|
2,889 |
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Subprime |
634 |
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|
734 |
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Other |
239 |
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|
176 |
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Total outstanding claims by product type |
$ |
11,672 |
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$ |
10,687 |
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(1) |
Excludes MI (mortgage insurance) rescission notices. For additional information, see Rescission Notices on page 202 of this Note.
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(2) |
Amounts for September 30, 2011 and December 31, 2010 include $1.7 billion in demands contained in correspondence from private-label securitizations investors in the Covered Trusts that do not have the right to demand repurchase of loans directly or the right to access loan files. For additional information, see Settlement with Bank of New York Mellon, as Trustee on page 199.
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| Loan Repurchases and Indemnification Payments |
The table below presents first-lien and home equity loan repurchases and indemnification payments for the three and nine months ended September 30, 2011 and 2010.
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Loan Repurchases and Indemnification Payments |
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Three Months Ended September 30 |
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2011 |
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2010 |
(Dollars in millions) |
Unpaid
Principal
Balance
|
|
Cash Paid
for
Repurchases
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|
Loss |
|
Unpaid
Principal
Balance
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Cash Paid
for
Repurchases
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Loss |
First-lien |
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Repurchases |
$ |
1,034 |
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$ |
1,183 |
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$ |
560 |
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$ |
567 |
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$ |
621 |
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$ |
230 |
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Indemnification payments |
1,600 |
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|
1,057 |
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1,057 |
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|
448 |
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|
258 |
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|
258 |
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Total first-lien |
2,634 |
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|
2,240 |
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|
1,617 |
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|
1,015 |
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|
879 |
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|
488 |
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Home equity |
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Repurchases |
3 |
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3 |
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— |
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13 |
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13 |
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8 |
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Indemnification payments |
7 |
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6 |
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6 |
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29 |
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28 |
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28 |
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Total home equity |
10 |
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9 |
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6 |
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42 |
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41 |
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36 |
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Total first-lien and home equity |
$ |
2,644 |
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$ |
2,249 |
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$ |
1,623 |
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$ |
1,057 |
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$ |
920 |
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$ |
524 |
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Nine Months Ended September 30 |
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2011 |
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2010 |
First-lien |
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Repurchases |
$ |
2,228 |
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$ |
2,516 |
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$ |
1,112 |
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$ |
1,776 |
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$ |
1,946 |
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$ |
857 |
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Indemnification payments |
2,892 |
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|
1,756 |
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1,756 |
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1,249 |
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|
720 |
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|
720 |
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Total first-lien |
5,120 |
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|
4,272 |
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2,868 |
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3,025 |
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2,666 |
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|
1,577 |
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Home equity |
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Repurchases |
21 |
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21 |
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14 |
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55 |
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61 |
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37 |
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Indemnification payments |
92 |
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93 |
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93 |
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108 |
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104 |
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104 |
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Total home equity |
113 |
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114 |
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107 |
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163 |
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165 |
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141 |
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Total first-lien and home equity |
$ |
5,233 |
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$ |
4,386 |
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$ |
2,975 |
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$ |
3,188 |
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$ |
2,831 |
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$ |
1,718 |
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| Rollforward of the liability for representations and warranties |
The table below presents a rollforward of the liability for representations and warranties and corporate guarantees.
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Three Months Ended September 30 |
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Nine Months Ended September 30 |
(Dollars in millions) |
2011 |
|
2010 |
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2011 |
|
2010 |
Liability for representations and warranties and corporate guarantees, beginning of period |
$ |
17,780 |
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$ |
3,939 |
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$ |
5,438 |
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$ |
3,507 |
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Additions for new sales |
3 |
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6 |
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|
13 |
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|
23 |
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Charge-offs |
(1,790 |
) |
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(415 |
) |
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(4,508 |
) |
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(1,774 |
) |
Provision |
278 |
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|
872 |
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|
15,328 |
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|
2,646 |
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Liability for representations and warranties and corporate guarantees, September 30 |
$ |
16,271 |
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$ |
4,402 |
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$ |
16,271 |
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$ |
4,402 |
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