Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 34

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 34
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156 1,550 83 157 June 30, 2024Residential mortgage (1)$427 149 160 736 1 3 Credit card (2)475 72 59 606 57 99 Total consumer$902 221 219 1,342 58 102 (1)Loan modifications in an active payment deferral are excluded. Includes loans where delinquency status was not reset to current upon exit from the deferral period.(2)Credit card loans that are past due at the time of the modification do not become current until they have three consecutive months of payment performance.Commitments to lend additional funds on commercial loans modified during the first half of 2025 and 2024, were $235 million and $236 million, respectively, the majority of which were in the commercial and industrial portfolio. Commitments to lend additional funds on consumer loans modified during the first half of both 2025 and 2024, were insignificant.

84Wells Fargo & Company

Note 6:  Mortgage Banking Activities Mortgage banking activities consist of residential and commercial mortgage originations, sales and servicing.We apply the fair value method to residential mortgage servicing rights (MSRs) and apply the amortization method to commercial MSRs. Table 6.1 presents MSRs, including the changes in MSRs measured using the fair value method and the amortization method.Table 6.1:  Mortgage Servicing RightsQuarter ended June 30,Six months ended June 30,(in millions)2025202420252024Residential MSRs at fair value, beginning of period$6,536 7,249 $6,844 7,468 Originations/purchases26 20 51 39 Sales and other(37)(34)(113)(297)Net reductions(11)(14)(62)(258)Changes in fair value:Due to valuation inputs or assumptions:Market interest rates (1)(2)90 (125)367 Servicing and foreclosure costs(7)(13)(2)(29)Discount rates(1)(45)(1)(53)Prepayment estimates and other (2)98 28 148 26 Net changes in valuation inputs or assumptions88 60 20 311  Changes due to collection/realization of expected cash flows (3)(196)(234)(385)(460)Total changes in fair value(108)(174)(365)(149)Residential MSRs