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Representations and Warranties Obligations and Corporate Guarantees (Tables)
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6 Months Ended |
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Jun. 30, 2012
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| Guarantees [Abstract] |
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| Outstanding Claims By Category And Product |
The table below presents unresolved repurchase claims at June 30, 2012 and December 31, 2011. The unresolved claims include only claims where the Corporation believes that the counterparty has a basis to submit claims. For additional information, see Whole Loan Sales and Private-label Securitizations Experience in this Note and Note 10 – Commitments and Contingencies. These repurchase claims do not include any repurchase claims related to the BNY Mellon Settlement regarding the Covered Trusts.
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Unresolved Repurchase Claims by Counterparty and Product Type |
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(Dollars in millions) |
June 30
2012 |
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December 31
2011 |
By counterparty (1, 2)
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GSEs |
$ |
10,974 |
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$ |
6,258 |
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Monolines |
3,128 |
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|
3,082 |
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Whole-loan investors, private-label securitization trustees and other |
8,603 |
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|
3,267 |
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Total unresolved repurchase claims by counterparty |
$ |
22,705 |
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$ |
12,607 |
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By product type (1, 2)
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Prime loans |
$ |
6,729 |
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$ |
3,925 |
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Alt-A |
4,648 |
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|
2,286 |
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Home equity |
2,954 |
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|
2,872 |
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Pay option |
4,390 |
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|
1,993 |
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Subprime |
2,526 |
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|
891 |
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Other |
1,458 |
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|
640 |
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Total unresolved repurchase claims by product type |
$ |
22,705 |
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$ |
12,607 |
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(1) |
Excludes certain MI rescission notices. However, at June 30, 2012 and December 31, 2011, included $2.0 billion and $1.2 billion of repurchase requests received from the GSEs that have resulted solely from MI rescission notices. For additional information, see Mortgage Insurance Rescission Notices in this Note.
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(2) |
At June 30, 2012 and December 31, 2011, unresolved repurchase claims did not include repurchase demands of $3.1 billion and $1.7 billion where the Corporation believes the claimants have not satisfied the contractual thresholds as noted on page 195.
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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 six months ended June 30, 2012 and 2011.
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Loan Repurchases and Indemnification Payments |
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Three Months Ended June 30 |
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2012 |
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2011 |
(Dollars in millions) |
Unpaid
Principal
Balance
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Cash Paid
for
Repurchases
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Loss |
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Unpaid
Principal
Balance
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Cash Paid
for
Repurchases
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Loss |
First-lien |
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Repurchases |
$ |
500 |
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$ |
520 |
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$ |
86 |
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$ |
860 |
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$ |
970 |
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$ |
419 |
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Indemnification payments |
197 |
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48 |
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48 |
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958 |
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|
539 |
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|
539 |
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Total first-lien |
697 |
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568 |
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134 |
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1,818 |
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1,509 |
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958 |
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Home equity |
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Repurchases |
12 |
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12 |
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— |
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3 |
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3 |
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— |
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Indemnification payments |
14 |
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11 |
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11 |
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45 |
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48 |
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48 |
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Total home equity |
26 |
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23 |
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11 |
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48 |
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51 |
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48 |
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Total first-lien and home equity |
$ |
723 |
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$ |
591 |
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$ |
145 |
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$ |
1,866 |
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$ |
1,560 |
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$ |
1,006 |
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Six Months Ended June 30 |
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2012 |
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2011 |
First-lien |
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Repurchases |
$ |
750 |
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$ |
804 |
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$ |
215 |
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$ |
1,194 |
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$ |
1,333 |
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$ |
552 |
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Indemnification payments |
464 |
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|
172 |
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172 |
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1,292 |
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|
699 |
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|
699 |
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Total first-lien |
1,214 |
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|
976 |
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387 |
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2,486 |
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2,032 |
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1,251 |
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Home equity |
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Repurchases |
16 |
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16 |
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— |
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18 |
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18 |
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14 |
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Indemnification payments |
25 |
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22 |
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22 |
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85 |
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87 |
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87 |
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Total home equity |
41 |
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38 |
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22 |
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103 |
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105 |
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101 |
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Total first-lien and home equity |
$ |
1,255 |
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$ |
1,014 |
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$ |
409 |
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$ |
2,589 |
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$ |
2,137 |
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$ |
1,352 |
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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.
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Representations and Warranties and Corporate Guarantees |
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Three Months Ended June 30 |
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Six Months Ended June 30 |
(Dollars in millions) |
2012 |
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2011 |
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2012 |
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2011 |
Liability for representations and warranties and corporate guarantees, beginning of period |
$ |
15,746 |
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$ |
6,220 |
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$ |
15,858 |
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$ |
5,438 |
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Additions for new sales |
6 |
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3 |
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11 |
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10 |
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Charge-offs |
(204 |
) |
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(2,480 |
) |
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(603 |
) |
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(2,718 |
) |
Provision |
395 |
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14,037 |
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|
677 |
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|
15,050 |
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Liability for representations and warranties and corporate guarantees, June 30 |
$ |
15,943 |
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$ |
17,780 |
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$ |
15,943 |
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$ |
17,780 |
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