Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 36

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 36
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Wells Fargo & Company85

Note 6:  Mortgage Banking Activities (continued)

The sensitivities in the preceding table are hypothetical and caution should be exercised when relying on this data. Changes in value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in value may not be linear. Also, the effect of a variation in a particular assumption on the value of the other interests held is calculated independently without changing any other assumptions. In reality, changes in one factor may result in changes in others, which might magnify or counteract the sensitivities.We present information for our managed servicing portfolio in Table 6.3 using unpaid principal balance for loans serviced and subserviced for others and carrying value for owned loans serviced.As the servicer of loans for others, we advance certain payments of principal, interest, taxes, insurance, and default-related expenses. The credit risk related to these advances is limited since the reimbursement is generally senior to cash payments to investors and are generally reimbursed within a short timeframe from cash flows from the trust, government-sponsored enterprise (GSEs), insurer, or borrower. We maintain an allowance for uncollectible amounts for advances on loans serviced for others that may not be reimbursed if the payments were not made in accordance with applicable servicing agreements or if the insurance or servicing agreements contain limitations on reimbursements. We also advance payments of taxes and insurance for our owned loans which are collectible from the borrower. Servicer advances on owned loans are written-off when deemed uncollectible.Table 6.3:  Managed Servicing PortfolioJun 30, 2025Dec 31, 2024($ in billions, unless otherwise noted)Residential mortgagesCommercial mortgagesResidential mortgagesCommercial mortgagesServiced and subserviced for others (1)$460 74 488 531 Owned loans serviced247 114 252 117 Total managed servicing portfolio707 188 740 648 Total serviced for others, excluding subserviced for others455 57 487 522 MSRs as a percentage of loans serviced for others1.41 %1.11 1.41 0.18 Weighted average note rate (mortgage loans serviced for others)3.77 3.94 3.76 5.05 Servicer advances, net of an allowance for uncollectible amounts ($ in millions) (1)$723 22 977 1,173 (1)In first quarter