Wells Fargo 2010 Annual Report Download - page 159
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We present the components of our managed servicing
portfolio in the following table at unpaid principal balance for
loans serviced and subserviced for others and at book value for
owned loans serviced.
December 31,
(in billions)
2010
2009
2008
Residential mortgage servicing:
Serviced for others $
1,429
1,422
1,388
Owned loans serviced
371
364
378
Subservicing
9
10
15
Total residential servicing
1,809
1,796
1,781
Commercial mortgage servicing:
Serviced for others
408
454
472
Owned loans serviced
99
105
103
Subservicing
13
10
11
Total commercial servicing
520
569
586
Total managed servicing portfolio $
2,329
2,365
2,367
Total serviced for others $
1,837
1,876
1,860
Ratio of MSRs to related loans serviced for others
0.86
% 0.91
0.87
The components of mortgage banking noninterest income were:
Year ended December 31,
(in millions) 2010
2009
2008
Servicing income, net:
Servicing fees (1)(2) $ 4,597
4,176
4,109
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (3) (2,957)
(1,534)
(3,341)
Other changes in fair value (4) (2,554)
(3,436)
(2,559)
Total changes in fair value of MSRs carried at fair value (5,511)
(4,970)
(5,900)
Amortization, net of impairment (228)
(264)
(75)
Provision for MSRs in excess of fair value (3)
-
-
Net derivative gains from economic hedges (5) 4,485
6,849
3,099
Total servicing income, net 3,340
5,791
1,233
Net gains on mortgage loan origination/sales activities (2) 6,397
6,237
1,292
Total mortgage banking noninterest income $ 9,737
12,028
2,525
Market-related valuation changes to MSRs, net of hedge results (3) + (5) $ 1,528
5,315
(242)
(1) Amounts are presented net of certain unreimbursed direct servicing obligations primarily associated with workout activities.
(2) 2009 and 2008 amounts have been revised to conform with current period presentation.
(3) Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates and costs to service, including delinquency and
foreclosure costs.
(4) Represents changes due to collection/realization of expected cash flows over time.
(5) Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs. See Note 15 – Free-Standing Derivatives for
additional discussion and detail.
157