Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 75

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 75
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 not hold variable interests that we consider potentially significant or are not the primary servicer for a majority of the VIE assets.WHOLE LOAN SALE TRANSACTIONS.  We may also sell whole loans to VIEs where we have continuing involvement in the form of financing. We account for these transfers as sales, and do not consolidate the VIEs as we do not have the power to direct the most significant activities of the VIEs.Table 13.1 presents information about transfers of assets during the periods presented for which we recorded the transfers as sales and have continuing involvement with the transferred assets. In connection with these transfers, we received proceeds and recorded servicing assets and securities. Each of these interests are initially measured at fair value. Servicing rights are classified as Level 3 measurements, and generally securities are classified as Level 2. Transfers of residential mortgage loans are transactions with the GSEs or GNMA and generally result in no 

106Wells Fargo & Company

gain or loss because the loans are typically measured at fair value on a recurring basis. Transfers of commercial mortgage loans include both transactions with the GSEs or GNMA and nonconforming transactions. These commercial mortgage loans are carried at the lower of cost or market, and we recognize gains on such transfers when the market value is greater than the carrying value of the loan when it is sold.Table 13.1:  Transfers with Continuing Involvement20252024(in millions)Residential mortgagesCommercial mortgages (1)Residential mortgagesCommercial mortgages (1)Quarter ended June 30,Assets sold $2,235 3,596 2,016 3,736 Proceeds from transfer (2)2,235 3,624 2,016 3,789 Net gains (losses) on sale— 28 — 53 Continuing involvement (3):Servicing rights recognized$26 22 19 16 Securities recognized (4)— 106 — 48 Six months ended June 30,Assets sold $4,117 4,271 3,700 5,285 Proceeds from transfer (2)4,117 4,310 3,700 5,359 Net gains (losses) on sale— 39 — 74 Continuing involvement (3):Servicing rights recognized$50 33 35 26 Securities recognized (4)— 106 — 48 (1)In first quarter