Wells Fargo Provides Statement on Independent Foreclosure Review Agreement Reached Today

Mon Jan 7, 2013 4:12pm EST

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SAN FRANCISCO--(Business Wire)--
Wells Fargo & Company (NYSE: WFC) and nine other mortgage servicers have entered
into settlement agreements with the Office of the Comptroller of the Currency
(OCC) and the Federal Reserve Board (FRB) that would end their Independent
Foreclosure Review (IFR) programs created by Article VII of an April 2011
Interagency Consent Order and replace it with an accelerated remediation
process. Wells Fargo issued the following statement regarding the agreements. 

"We are pleased that the regulators and servicers came together to reach this
settlement, which will bring resolution to more borrowers in an expedited
manner," said Mike Heid, president of Wells Fargo Home Mortgage. "This agreement
allows us to move forward and continue our focus on doing all we can do to
provide relief to our customers and restore stability to housing markets across
the country." 

Wells Fargo`s portion of the cash settlement will be $766 million, which is
based on the proportionate share of Wells Fargo-serviced loans in the overall
IFR population. Wells Fargo expects to record a pre-tax charge of approximately
$644 million in the fourth quarter of 2012 to fully reserve for its cash payment
portion of the settlement and additional remediation-related costs. Wells Fargo
will commit an additional $1.2 billion to foreclosure prevention actions. This
commitment will not result in any charge as the Company believes that the
commitment is covered through the existing allowance for credit losses and the
nonaccretable difference relating to our purchased credit-impaired loan
portfolio. The Company will report its fourth quarter 2012 results on January
11, 2013. 

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based
financial services company with $1.4 trillion in assets. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking, insurance,
investments, mortgage, and consumer and commercial finance through more than
9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in
more than 35 countries to support the bank`s customers who conduct business in
the global economy. With more than 265,000 team members, Wells Fargo serves one
in three households in the United States. Wells Fargo & Company was ranked No.
26 on Fortune`s 2012 rankings of America`s largest corporations. Wells Fargo`s
vision is to satisfy all our customers` financial needs and help them succeed
financially.

Wells Fargo & Company
Vickee Adams, 515-213-4610 (Media)
Jim Rowe, 415-396-8216 (Investors) 



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