Quarterly report pursuant to Section 13 or 15(d)

Representations and Warranties Obligations and Corporate Guarantees (Tables)

v3.8.0.1
Representations and Warranties Obligations and Corporate Guarantees (Tables)
 9 Months Ended
Sep. 30, 2017
Representations and Warranties Obligations and Corporate Guarantees [Abstract]  
Outstanding Claims by Category and Product
The following table presents unresolved repurchase claims at September 30, 2017 and December 31, 2016. The unresolved repurchase claims include only claims where the Corporation believes that the counterparty has the contractual right to submit claims. The unresolved repurchase claims predominantly relate to subprime and pay option first-lien loans and home equity loans. For more information, see Private-label Securitizations and Whole-loan Sales Experience in the MD&A of the Corporation's 2016 Annual Report on Form 10-K, as well as Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation's 2016 Annual Report on Form 10-K.
 
 
 
 
Unresolved Repurchase Claims by Counterparty, Net of Duplicate Claims
(Dollars in millions)
September 30
2017
 
December 31
2016
By counterparty
 

 
 

Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other (1)
$
16,019

 
$
16,685

Monolines
1,578

 
1,583

GSEs
5

 
9

Total unresolved repurchase claims by counterparty, net of duplicate claims
$
17,602

 
$
18,277

(1) 
Includes $11.3 billion and $11.9 billion of claims based on individual file reviews and $4.7 billion and $4.8 billion of claims submitted without individual file reviews at September 30, 2017 and December 31, 2016.
Rollforward of Liability for Representation and Warranties
The table below presents a rollforward of the reserve for representations and warranties and corporate guarantees.
 
 
 
 
 
 
 
 
Representations and Warranties and Corporate Guarantees
 
 
 
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2017
 
2016
 
2017
 
2016
Reserve for representations and warranties and corporate guarantees, beginning of period
$
2,248

 
$
2,723

 
$
2,339

 
$
11,326

Additions for new sales
1

 
1

 
3

 
3

Payments (1)
(297
)
 
(23
)
 
(385
)
 
(8,687
)
Provision
198

 
99

 
193

 
158

Reserve for representations and warranties and corporate guarantees, September 30
$
2,150

 
$
2,800

 
$
2,150

 
$
2,800


(1) 
In February 2016, the Corporation made an $8.5 billion settlement payment to BNY Mellon as part of the settlement with BNY Mellon.