Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 196

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 13
Chunk 196
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 MSRs – Assumptions at Securitization Date20252024Quarter ended June 30,Prepayment rate (1)15.3%16.8 Discount rate10.1 10.3 Cost to service ($ per loan) $62 211 Six months ended June 30,Prepayment rate (1)14.8%17.0 Discount rate10.2 10.3 Cost to service ($ per loan)$62 236 (1)Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.See Note 12 (Fair Value Measurements) and Note 6 (Mortgage Banking Activities) for additional information on key assumptions for residential MSRs.RESECURITIZATION ACTIVITIES.  We enter into resecuritization transactions as part of our trading activities to accommodate the investment and risk management activities of our customers. In resecuritization transactions, we transfer trading debt securities to VIEs in exchange for new beneficial interests that are sold to third parties at or shortly after securitization settlement. This activity is performed for customers seeking a specific return or risk profile. Substantially all of our transactions involve the resecuritization of conforming mortgage-backed securities issued by the GSEs or guaranteed by GNMA. We do not consolidate the resecuritization VIEs as we share in the decision-making power with third parties and do not hold significant economic interests in the VIEs other than for market-making activities. During the six months ended June 30, 2025 and 2024, we transferred trading debt securities of $8.0 billion and $5.2 billion, respectively, to resecuritization VIEs, and retained trading debt securities of $932 million and $211 million, respectively. These amounts are not included in Table 13.1. As of June 30, 2025, and December 31, 2024, we held $1.1 billion and $819 million of trading debt securities, respectively. Total resecuritization VIE assets, to which we sold assets and hold an interest, were $49.3 billion and $44.1 billion at June 30, 2025, and December 31, 2024, respectively.

Wells Fargo & Company107