Securitizations and Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2012

Securitizations and Variable Interest Entities (Tables) [Abstract]

Assets and Liabilities associated with Variable Interest entities


							Transfers that
			VIEs that we			VIEs	we account
			do not			that we	for as secured
(in millions)			consolidate		consolidate		borrowings		Total

December 31, 2012

Cash			$	-		260		30	290
Trading assets				1,902		114		218	2,234
Securities available for sale (1)				19,900		2,772		14,848	37,520
Mortgages held for sale				-		469		-	469
Loans				9,841		10,553		7,088	27,482
Mortgage servicing rights				11,114		-		-	11,114
Other assets				4,993		457		161	5,611
	Total assets			47,750		14,625		22,345	84,720
Short-term borrowings				-		2,059	(2)	13,228	15,287
Accrued expenses and other liabilities				3,441		901	(2)	20	4,362
Long-term debt				-		3,483	(2)	6,520	10,003
	Total liabilities			3,441		6,443		19,768	29,652
Noncontrolling interests				-		48		-	48
		Net assets	$	44,309		8,134		2,577	55,020

December 31, 2011

Cash			$	-		321		11	332
Trading assets				3,723		293		30	4,046
Securities available for sale (1)				21,708		3,332		11,671	36,711
Mortgages held for sale				-		444		-	444
Loans				11,404		11,967		7,181	30,552
Mortgage servicing rights				12,080		-		-	12,080
Other assets				4,494		1,858		137	6,489
	Total assets			53,409		18,215		19,030	90,654
Short-term borrowings				-		3,450	(2)	10,682	14,132
Accrued expenses and other liabilities				3,350		1,138	(2)	121	4,609
Long-term debt				-		4,932	(2)	6,686	11,618
	Total liabilities			3,350		9,520		17,489	30,359
Noncontrolling interests				-		61		-	61
		Net assets	$	50,059		8,634		1,541	60,234

Excludes certain debt securities related to loans serviced for the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and GNMA.
Includes the following VIE liabilities at December 31, 2012, and December 31, 2011, respectively, with recourse to the general credit of Wells Fargo: Short-term borrowings, $2.1 billion and $3.4 billion; Accrued expenses and other liabilities, $767 million and $963 million; and Long-term debt, $29 million and $30 million.

Transactions with Variable Interest Entity


									Other
				Total		Debt and			commitments
				VIE		equity	Servicing		and	Net
(in millions)				assets	interests (1)		assets	Derivatives	guarantees	assets
December 31, 2012
						Carrying value - asset (liability)
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:
		Conforming			$	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

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								Other
			Total		Debt and			commitments
			VIE		equity	Servicing		and	Net
(in millions)			assets		interests (1)	assets	Derivatives	guarantees	assets
December 31, 2011
					Carrying value - asset (liability)
Residential mortgage loan securitizations:
	Conforming	$	1,135,629		4,682	11,070	-	(975)	14,777
	Other/nonconforming		61,461		2,460	353	1	(48)	2,766
Commercial mortgage securitizations			179,007		7,063	623	349	-	8,035
Collateralized debt obligations:
	Debt securities		11,240		1,107	-	193	-	1,300
	Loans (2)		9,757		9,511	-	-	-	9,511
Asset-based finance structures			9,606		6,942	-	(130)	-	6,812
Tax credit structures			19,257		4,119	-	-	(1,439)	2,680
Collateralized loan obligations			12,191		2,019	-	40	-	2,059
Investment funds			6,318		-	-	-	-	-
Other (3)			18,717		1,896	34	190	(1)	2,119
	Total	$	1,463,183		39,799	12,080	643	(2,463)	50,059

					Maximum exposure to loss
Residential mortgage loan securitizations:
	Conforming			$	4,682	11,070	-	3,657	19,409
	Other/nonconforming				2,460	353	1	295	3,109
Commercial mortgage securitizations					7,063	623	538	-	8,224
Collateralized debt obligations:
	Debt securities				1,107	-	874	-	1,981
	Loans (2)				9,511	-	-	-	9,511
Asset-based finance structures					6,942	-	130	1,504	8,576
Tax credit structures					4,119	-	-	-	4,119
Collateralized loan obligations					2,019	-	41	523	2,583
Investment funds					-	-	-	41	41
Other (3)					1,896	34	903	150	2,983
	Total			$	39,799	12,080	2,487	6,170	60,536

Includes total equity interests of $5.8 billion and $4.5 billion at December 31, 2012 and 2011, respectively. The December 31, 2011 equity interests balance has been revised to include tax credit structures, which are all equity interests. 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.
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 83% and 88% were rated as investment grade by the primary rating agencies at December 31, 2012 and 2011, respectively. These senior loans are accounted for at amortized cost and are subject to the Company's allowance and credit charge-off policies.
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.

Cash flows with securitization trusts


		Year ended December 31,
		2012		2011		2010
			Other		Other		Other
	Mortgage		financial	Mortgage	financial	Mortgage	financial
(in millions)		loans	assets	loans	assets	loans	assets
Sales proceeds from securitizations (1)	$	535,372	-	337,357	-	374,488	-
Servicing fees		4,433	10	4,401	11	4,316	34
Other interests held		1,767	135	1,779	263	1,786	442
Purchases of delinquent assets		62	-	9	-	25	-
Net servicing advances		226	-	29	-	49	-

Represents cash flow data for all loans securitized in the period presented.

Key Assumptions To Measure Mortgage Servicing Assets At Date Of Securitization


		Residential mortgage
		servicing rights
		2012		2011	2010
Year ended December 31,
Prepayment speed (1)		13.4	%	12.8	13.5
Discount rate		7.3		7.7	5.4
Cost to service ($ per loan) (2)	$	151		146	151

The prepayment speed assumption for residential mortgage servicing rights includes a blend of prepayment speeds and default rates. Prepayment speed assumptions are influenced by mortgage interest rate inputs as well as our estimation of drivers of borrower behavior.
Includes costs to service and unreimbursed foreclosure costs.

Key Assumptions To Measure Mortgage Servicing Rights And Other Interests Held At Balance Sheet Date


							Other interests held
				Residential
				mortgage		Interest-			Consumer				Commercial (2)
				servicing			only	Subordinated			Senior	Subordinated		Senior
($ in millions, except cost to service amounts)					rights (1)		strips		bonds		bonds		bonds	bonds
Fair value of interests held at December 31, 2012				$	11,538		187		40		-		249	982
Expected weighted-average life (in years)					4.8		4.1		5.9		-		4.7	5.3

Key economic assumptions:
	Prepayment speed assumption (3)				15.7	%	10.6		6.8		-
		Decrease in fair value from:
			10% adverse change	$	869		5		-		-
			25% adverse change		2,038		12		-		-

	Discount rate assumption				7.4	%	16.9		8.9		-		3.5	2.2
		Decrease in fair value from:
			100 basis point increase	$	562		4		2		-		12	43
			200 basis point increase		1,073		8		4		-		21	84

	Cost to service assumption ($ per loan)				219
		Decrease in fair value from:
			10% adverse change		615
			25% adverse change		1,537

	Credit loss assumption								0.4	%	-		10.0	-
		Decrease in fair value from:
			10% higher losses					$	-		-		12	-
			25% higher losses						-		-		19	-

Fair value of interests held at December 31, 2011				$	12,918		230		45		321		240	852
Expected weighted-average life (in years)					5.1		4.6		6.1		5.6		5.3	4.4

Key economic assumptions:
Prepayment speed assumption (3)					14.8	%	10.7		6.9		13.9
	Decrease in fair value from:
		10% adverse change		$	895		6		-		2
		25% adverse change			2,105		15		1		4

	Discount rate assumption				7.1	%	15.6		11.9		7.1		3.8	2.4
		Decrease in fair value from:
			100 basis point increase	$	566		6		2		12		9	31
			200 basis point increase		1,081		12		4		24		18	59

	Cost to service assumption ($ per loan)				218
		Decrease in fair value from:
			10% adverse change		582
			25% adverse change		1,457

	Credit loss assumption								0.5	%	4.5		10.7	-
		Decrease in fair value from:
			10% higher losses					$	-		1		8	-
			25% higher losses						-		2		18	-

December 31, 2011, has been revised to report only the sensitivities for residential mortgage servicing rights. See narrative following this table for a discussion of commercial mortgage servicing rights.
“Other interests held” has been expanded to include retained interests from commercial securitizations. Prepayment speed assumptions do not significantly impact the value of commercial mortgage securitization bonds as the underlying commercial mortgage loans experience significantly lower prepayments due to certain contractual restrictions, impacting the borrower's ability to prepay the mortgage.
The prepayment speed assumption for residential mortgage servicing rights includes a blend of prepayment speeds and default rates. Prepayment speed assumptions are influenced by mortgage interest rate inputs as well as our estimation of drivers of borrower behavior.

Principal Balances - Off-Balance Sheet Securitized Loans


									Net charge-offs
					Total loans		Delinquent loans		Year ended
				December 31,			December 31,		December 31,
(in millions)					2012	2011	2012	2011	2012	2011
Commercial:
	Real estate mortgage			$	128,564	137,121	12,216	11,142	541	569
		Total commercial			128,564	137,121	12,216	11,142	541	569
Consumer:
	Real estate 1-4 family first mortgage				1,283,504	1,171,666	21,574	24,235	1,170	1,506
	Real estate 1-4 family junior lien mortgage				1	2	-	-	-	16
	Other revolving credit and installment				2,034	2,271	110	131	-	-
		Total consumer			1,285,539	1,173,939	21,684	24,366	1,170	1,522
			Total off-balance sheet securitized loans (1)	$	1,414,103	1,311,060	33,900	35,508	1,711	2,091

At December 31, 2012 and 2011, the table includes total loans of $1.3 trillion and $1.2 trillion, respectively, and delinquent loans of $17.4 billion and $19.7 billion, respectively for FNMA, FHLMC and GNMA. Net charge-offs exclude loans sold to FNMA, FHLMC and GNMA as we do not service or manage the underlying real estate upon foreclosure and, as such, do not have access to net charge-off information.

Transactions With Consolidated Variable Interest Entities



							Carrying value
					Total			Third
					VIE	Consolidated		party	Noncontrolling		Net
(in millions)					assets		assets	liabilities		interests	assets
December 31, 2012

Secured borrowings:
	Municipal tender option bond securitizations			$	16,782		15,130	(13,248)		-	1,882
	Commercial real estate loans				975		975	(696)		-	279
	Residential mortgage securitizations				5,757		6,240	(5,824)		-	416
		Total secured borrowings			23,514		22,345	(19,768)		-	2,577
Consolidated VIEs:
	Nonconforming residential
		mortgage loan securitizations			8,633		7,707	(2,933)		-	4,774
	Multi-seller commercial paper conduit				2,059		2,036	(2,053)		-	(17)
	Auto loan securitizations				-		-	-		-	-
	Structured asset finance				71		71	(17)		-	54
	Investment funds				1,837		1,837	(2)		-	1,835
	Other				3,454		2,974	(1,438)		(48)	1,488
		Total consolidated VIEs			16,054		14,625	(6,443)		(48)	8,134
			Total secured borrowings and consolidated VIEs	$	39,568		36,970	(26,211)		(48)	10,711
December 31, 2011

Secured borrowings:
	Municipal tender option bond securitizations			$	14,168		11,748	(10,689)		-	1,059
	Commercial real estate loans				1,168		1,168	(1,041)		-	127
	Residential mortgage securitizations				5,705		6,114	(5,759)		-	355
		Total secured borrowings			21,041		19,030	(17,489)		-	1,541
Consolidated VIEs:
	Nonconforming residential
		mortgage loan securitizations			11,375		10,244	(4,514)		-	5,730
	Multi-seller commercial paper conduit				2,860		2,860	(2,935)		-	(75)
	Auto loan securitizations				163		163	(143)		-	20
	Structured asset finance				124		124	(16)		-	108
	Investment funds				2,012		2,012	(22)		-	1,990
	Other				3,432		2,812	(1,890)		(61)	861
		Total consolidated VIEs			19,966		18,215	(9,520)		(61)	8,634
			Total secured borrowings and consolidated VIEs	$	41,007		37,245	(27,009)		(61)	10,175

- Definition

Tabular disclosure of all information related to the key inputs and assumptions (including, at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses) used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement with transferred financial assets, as of the balance sheet date.

+ References+ Details

- Definition

Tabular disclosure of all information related to the key inputs and assumptions used in measuring the fair value of assets obtained or liabilities incurred, as the result of a sale of financial assets, relating to the transferor's continuing involvement, if any, at the time of securitization, asset-backed financing arrangement, or similar transfer (including at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses, including expected static pool losses).

+ References+ Details