Wells Fargo 2013 Annual Report Download - page 188

Note 8: Securitizations and Variable Interest Entities (continued)
(continued from previous page)
Carrying value - asset (liability)
(in millions)
Total
VIE
assets
Debt and
equity
interests (1)
Servicing
assets Derivatives
Other
commitments
and
guarantees
Net
assets
December 31, 2012
Residential mortgage loan securitizations:
Conforming $ 1,268,494 3,620 10,336 - (1,690) 12,266
Other/nonconforming 49,794 2,188 284 - (53) 2,419
Commercial mortgage securitizations 168,126 7,081 466 404 - 7,951
Collateralized debt obligations:
Debt securities 6,940 13 -471 144 628
Loans (2) 8,155 7,962 - - - 7,962
Asset-based finance structures 10,404 7,155 -(104) - 7,051
Tax credit structures 20,098 5,180 - - (1,657) 3,523
Collateralized loan obligations 6,641 1,439 -1 - 1,440
Investment funds 4,771 49 - - - 49
Other (3) 10,401 977 28 14 1 1,020
Total $ 1,553,824 35,664 11,114 786 (3,255) 44,309
Maximum exposure to loss
Residential mortgage loan securitizations:
Debt and
equity
interests
Servicing
assets Derivatives
Other
commitments
and
guarantees
Total
exposure
Conforming (4) $ 3,620 10,336 -5,061 19,017
Other/nonconforming 2,188 284 -353 2,825
Commercial mortgage securitizations 7,081 466 446 - 7,993
Collateralized debt obligations:
Debt securities 13 -471 144 628
Loans (2) 7,962 - - - 7,962
Asset-based finance structures 7,155 -104 1,967 9,226
Tax credit structures 5,180 - - 247 5,427
Collateralized loan obligations 1,439 - 1 261 1,701
Investment funds 49 - - 27 76
Other (3) 977 28 318 119 1,442
Total $ 35,664 11,114 1,340 8,179 56,297
(1) Includes total equity interests of $6.9 billion at December 31, 2013 and $5.8 billion at December 31, 2012. Also includes debt interests in the form of both loans and
securities. Excludes certain debt securities held related to loans serviced for FNMA, FHLMC and GNMA.
(2) Represents senior loans to trusts that are collateralized by asset-backed securities. The trusts invest primarily in senior tranches from a diversified pool of primarily U.S.
asset securitizations, of which all are current, and over 72% and 83% were rated as investment grade by the primary rating agencies at December 31, 2013 and 2012,
respectively. These senior loans are accounted for at amortized cost and are subject to the Company’s allowance and credit charge-off policies.
(3) Includes structured financing, student loan securitizations, auto loan and lease securitizations and credit-linked note structures. Also contains investments in auction rate
securities (ARS) issued by VIEs that we do not sponsor and, accordingly, are unable to obtain the total assets of the entity.
(4) Maximum exposure to loss for conforming residential mortgage loan securitizations at December 31, 2013 reflects the benefit of settlements reached with both FHLMC and
FNMA in 2013, that resolved substantially all repurchase liabilities with FHLMC and FNMA, for mortgage loans either sold or originated prior to January 1, 2009. For additional
information on the agreement reached with FHLMC and FNMA see Note 9.
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