Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 37

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 37
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2025, we sold the non-agency portion of our commercial mortgage third-party servicing business.Table 6.4 presents the components of mortgage banking noninterest income.Table 6.4:  Mortgage Banking Noninterest IncomeQuarter ended June 30,Six months ended June 30,(in millions)2025202420252024Contractually specified servicing fees, late charges and ancillary fees$367 462 $773 936 Unreimbursed servicing costs (1)(76)(13)(103)(59)Amortization for commercial MSRs (2)(36)(58)(85)(115)Changes due to collection/realization of expected cash flows (3)(196)(234)(385)(460)Net servicing fees59 157 200 302 Changes in fair value of MSRs due to market interest rates(2)90 (125)367 Changes in fair value of MSRs due to other valuation inputs or assumptions (4)90 (30)145 (56)Net derivative gain (losses) from economic hedges (5)(6)(90)126 (361)Market-related valuation changes to residential MSRs, net of hedge results82 (30)146 (50)Total net servicing income141 127 346 252 Net gains on mortgage loan originations/sales (6)89 116 216 221 Total mortgage banking noninterest income$230 243 $562 473 (1)Includes costs associated with foreclosures, unreimbursed interest advances to investors, other interest costs, and transaction costs associated with sales of residential MSRs.(2)Estimated future amortization expense for commercial MSRs was $74 million for the remainder of 2025, and $125 million, $103 million, $92 million, $69 million, and $52 million for the years ended December 31, 2026, 2027, 2028, 2029, and 2030, respectively.(3)Represents the reduction in the cash flows expected to be collected during the period, net of income accreted due to the passage of time, for residential MSRs measured using the fair value method.(4)Refer to the analysis of changes in residential MSRs presented in Table 6.1 in this Note for more detail.(5)See Note 11 (Derivatives) for additional information on economic hedges for residential MSRs.(6)Includes net gains (losses) of $(2)