Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 66

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 66
---
 from trading and securities, and other noninterest income on our consolidated statement of income.(10)Included in other noninterest income on our consolidated statement of income.

Wells Fargo & Company101

Note 12:  Fair Value Measurements (continued)

Table 12.3 provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value on a recurring basis.Weighted averages of inputs are calculated using outstanding unpaid principal balances of loans serviced for residential MSRs and notional amounts for derivative instruments.Table 12.3:  Valuation Techniques – Recurring Basis ($ in millions, except cost to service amounts)Fair Value Level 3Valuation TechniqueSignificantUnobservable InputRange of Inputs Weighted AverageJune 30, 2025Mortgage servicing rights (residential)$6,417 Discounted cash flowCost to service per loan (1)$60 -454 103 Discount rate8.8 -15.0 %9.7 Prepayment rate (2)6.8 -20.9 8.1 Net derivative assets and (liabilities):Interest rate contracts(174)Discounted cash flowDiscount rate2.3 -3.9 3.8 (6)Discounted cash flowDefault rate0.4 -2.2 0.8 Loss severity50.0 -50.0 50.0 Equity contracts(652)Discounted cash flowConversion factor(1.0)-0.0 %(0.4)Weighted average life0.5-3.5yrs1.6(393)Option modelCorrelation factor(70.0)-98.0 %62.8 Volatility factor10.0 -108.0 39.8 December 31, 2024Mortgage servicing rights (residential)$6,844 Discounted cash flowCost to service per loan (1)$60 -451 103 Discount rate9.2 -15.5 %10.1 Prepayment rate (2)6.8 -19.4 8.1 Net derivative assets and (liabilities):Interest rate contracts(3,588)Discounted cash flowDiscount rate4.1 -4.2 4.1 (15)Discounted cash flowDefault rate0.4 -1.1 0.5