Securitizations and Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2026

Securitizations and Variable Interest Entities [Abstract]

Table 12.1 presents information about transfers of assets during the periods presented for which we recognized the transfers as sales and have continuing involvement with the transferred assets. In connection with these transfers, we received proceeds and recognized servicing assets and/or securities, as applicable. Each of these interests are initially measured at fair value. Servicing rights are classified as Level 3 measurements, and generally securities are classified as Level 2. Transfers of residential mortgage loans are transactions with the GSEs or

GNMA and generally result in no gain or loss because the loans are typically measured at fair value on a recurring basis. Transfers of commercial mortgage loans include both transactions with the GSEs or GNMA and nonconforming transactions. These

commercial mortgage loans are carried at the lower of cost or market, and we recognize gains on such transfers when the market value is greater than the carrying value of the loan when it is sold.

Table 12.1: Transfers with Continuing Involvement



	2026			2025
(in millions)	Residential mortgages		Commercial mortgages	Residential mortgages	Commercial mortgages
Quarter ended March 31,









Assets sold	$	1,334	2,340	1,882	675
Proceeds from transfer (1)	1,334		2,360	1,882	686
Net gains (losses) on sale	—		20	—	11

Continuing involvement (2):
Servicing rights recognized	$	17	18	24	11
Securities and loans recognized (3)	—		44	—	—

(1)Represents cash proceeds and the fair value of non-cash beneficial interests recognized at securitization settlement.

(2)Represents assets or liabilities recognized at securitization settlement date related to our continuing involvement in the transferred assets.

(3)Represents debt securities and loans obtained at securitization settlement held for investment purposes that are classified as available-for-sale securities, held-to-maturity securities, or held for investment loans. Excludes trading debt securities held temporarily for market-marking purposes, which are sold to third parties at or shortly after securitization settlement, of $416 million and $531 million during the quarters ended March 31, 2026 and 2025, respectively.

Residential MSRs – Assumptions at Securitization Date

Table 12.2 presents the key weighted-average assumptions we used to initially measure residential MSRs recognized during the periods presented.

Table 12.2: Residential MSRs – Assumptions at Securitization Date



	2026			2025
Quarter ended March 31,




Prepayment rate (1)	12.8		%	14.3
Discount rate	9.5			10.4
Cost to service ($ per loan)	$	61		62

(1)Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.

Sold or Securitized Loans Serviced for Others

Table 12.3 presents information about loans that we have originated and sold or securitized in which we have ongoing involvement as servicer. For loans sold or securitized where servicing is our only form of continuing involvement, we generally experience a loss only if we were required to repurchase a delinquent loan or foreclosed asset due to a breach in representations and warranties associated with our loan sale or servicing contracts. Delinquent loans include loans 90 days or more past due and loans in bankruptcy, regardless of delinquency status.

Table 12.3 excludes mortgage loans sold to and held or securitized by GSEs or GNMA of $452.5 billion and $461.8 billion at March 31, 2026, and December 31, 2025, respectively, due to guarantees provided by GSEs and the FHA and VA, which limit our credit risk associated with such securitizations. Delinquent loans and foreclosed assets related to loans sold to and held or securitized by GSEs and GNMA were $1.6 billion and $1.7 billion at March 31, 2026, and December 31, 2025, respectively.

Table 12.3: Sold or Securitized Loans Serviced for Others


						Net charge-offs
	Total loans			Delinquent loans and foreclosed assets (1)		Quarter ended March 31,
(in millions)	Mar 31, 2026		Dec 31, 2025	Mar 31, 2026	Dec 31, 2025	2026	2025
Commercial	$	6	6	—	—	—	—
Residential	2,800		3,069	262	287	4	1
Total off-balance sheet sold or securitized loans	$	2,806	3,075	262	287	4	1

(1)Includes $13 million of residential foreclosed assets at both March 31, 2026, and December 31, 2025.

Unconsolidated VIEs

Table 12.4 provides a summary of our exposure to the unconsolidated VIEs described above. We exclude certain transactions with unconsolidated VIEs when our continuing involvement is temporary or administrative in nature or insignificant in size.

In Table 12.4, “Total VIE assets” represents the remaining principal balance of assets held by unconsolidated VIEs using the most current information available. “Carrying value” is the amount on our consolidated balance sheet related to our involvement with the unconsolidated VIEs.

“Maximum exposure to loss” represents estimated loss that would be incurred under severe, hypothetical circumstances, for which we believe the possibility is extremely remote, such as where the value of our interests and any associated collateral declines to zero, without any consideration of recovery or offset

from any economic hedges. Accordingly, this disclosure is not an indication of expected loss.

“Maximum exposure to loss” is determined as the carrying value of our investment in the VIEs excluding the unconditional repurchase options that have not been exercised, plus the remaining undrawn liquidity and lending commitments, certain loss sharing obligations associated with loans originated, sold, and serviced under certain GSE programs, the notional amount of net written derivative contracts, and generally the notional amount of, or stressed loss estimate for, other commitments and guarantees. See Note 13 (Guarantees and Other Commitments) for additional information about our guarantees and commitments.

Table 12.4: Unconsolidated VIEs


			Carrying value – asset (liability)
(in millions)	Total VIE assets		Loans	All other assets (1)	Net assets	Guarantees and other commitments (2)
March 31, 2026
Nonconforming mortgage loan securitizations	$	2,310	—	274	274	—
Commercial real estate loans	4,986		4,971	15	4,986	—
Other	1,060		—	10	10	—
Total	8,356		4,971	299	5,270	—






Maximum exposure to loss			4,971	299	5,270	997


December 31, 2025
Nonconforming mortgage loan securitizations	$	2,585	—	284	284	—
Commercial real estate loans	4,998		4,984	14	4,998	—
Other	1,057		—	12	12	—
Total	8,640		4,984	310	5,294	—






Maximum exposure to loss			4,984	310	5,294	998

(1)All other assets includes trading assets, debt securities, and other assets.

(2)Maximum exposure to loss includes $840 million and $841 million of commercial real estate loan VIE structures at March 31, 2026, and December 31, 2025, respectively.

Income Statement Impacts for Affordable Housing and Renewable Energy Tax Credit Investments

Table 12.5 summarizes the impacts to our consolidated statement of income related to our affordable housing and renewable energy equity investments, which are accounted for using either the proportional amortization method or the equity method.

Table 12.5: Income Statement Impacts for Affordable Housing and Renewable Energy Tax Credit Investments


		Quarter ended March 31,
(in millions)			2026		2025
Income (loss) before income tax expense:
Proportional amortization method investments			$	56	57
Equity method investments (1)			(34)		(49)
Net income (loss) before income tax expense (2)	(A)		22		8
Income tax expense (benefit):
Proportional amortization of investments			874		708
Income tax credits and other income tax benefits			(1,174)		(956)
Net expense (benefit) recognized within income tax expense	(B)		(300)		(248)
Net income related to affordable housing and renewable energy tax credit investments	(A)-(B)		$	322	256

(1)Net losses presented include $140 million and $111 million of income from investment tax credits accounted for using the deferral method during the quarters ended March 31, 2026 and 2025, respectively.

(2)Generally included in other noninterest income on our consolidated statement of income.

Consolidated VIEs

Table 12.6 presents a summary of financial assets and liabilities of our consolidated VIEs. The carrying value represents assets and liabilities recognized on our consolidated balance sheet. “Total VIE assets” includes affiliate balances that are eliminated upon consolidation, and therefore in some instances will differ from the carrying value of assets.

On our consolidated balance sheet, we separately disclose (1) the consolidated assets of certain VIEs that can only be used to settle the liabilities of those VIEs, and (2) the consolidated liabilities of certain VIEs for which the VIE creditors do not have recourse to Wells Fargo.

Table 12.6: Consolidated VIEs


			Carrying value – asset (liability)
(in millions)	Total VIE assets		Trading assets	Loans	All other assets	Long-term debt	Accrued expenses and other liabilities
March 31, 2026
Credit card securitizations	$	9,468	—	9,274	50	(3,753)	(7)
Corporate loan structures	2,169		2,128	—	37	—	(7)
Commercial financing structures	1,784		—	1,663	121	—	(188)
Total consolidated VIEs	$	13,421	2,128	10,937	208	(3,753)	(202)
December 31, 2025
Credit card securitizations	$	9,860	—	9,653	50	(3,775)	(7)
Corporate loan structures	2,307		2,271	—	36	—	(6)
Commercial financing structures	1,768		—	1,629	138	—	(193)
Total consolidated VIEs	$	13,935	2,271	11,282	224	(3,775)	(206)