Company: WFC-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000072971-25-000253
Chunk: 198

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 13
Chunk 198
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 related to principal and interest payments on these securities and loans. These amounts exclude cash flows related to trading activities.Table 13.2 presents the key weighted-average assumptions we used to initially measure residential MSRs recognized during the periods presented.Table 13.2:  Residential MSRs – Assumptions at Securitization Date20252024Quarter ended September 30,Prepayment rate (1)16.1%19.9 Discount rate9.8 9.9 Cost to service ($ per loan) $65 69 Nine months ended September 30,Prepayment rate (1)15.3%18.1 Discount rate10.1 10.1 Cost to service ($ per loan)$63 180 (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 nine months ended September 30, 2025 and 2024, we transferred trading debt securities of $13.9 billion and $6.4 billion, respectively, to resecuritization VIEs, and retained trading debt securities of $1.9 billion and $418 million, respectively. These amounts are not included in Table 13.1. As of September 30, 2025, and December 31, 2024, we held $1.5 billion and $819 million of trading debt securities, respectively. Total resecuritization