WELLS FARGO & COMPANY/MN | 2013 | FY | 3


 
                
      Primary modification type (1) Financial effects of modifications
            Weighted Recorded
            average investment
       Interest    interest related to
       rateOther  Charge-rate interest rate
(in millions)Principal (2)reductionconcessions (3)Total offs (4)reduction reduction (5)
                
Year ended December 31, 2013         
Commercial:           
 Commercial and industrial$ 4 176 1,081 1,261  17 4.71%$ 176
 Real estate mortgage  33 307 1,391 1,731  8 1.66   308
 Real estate construction  - 12 381 393  4 1.07   12
 Lease financing  - - - -  - -   -
 Foreign  15 1 - 16  - -   1
  Total commercial  52 496 2,853 3,401  29 2.72   497
Consumer:           
 Real estate 1-4 family first mortgage  1,143 1,170 3,681 5,994  233 2.64   2,019
 Real estate 1-4 family junior lien mortgage  103 181 472 756  42 3.33   276
 Credit card  - 182 - 182  - 10.38   182
 Automobile  3 12 97 112  34 7.66   12
 Other revolving credit and installment  - 10 12 22  - 4.87   10
 Trial modifications (6)  - - 50 50  - -   -
  Total consumer  1,249 1,555 4,312 7,116  309 3.31   2,499
   Total$ 1,301 2,051 7,165 10,517  338 3.21%$ 2,996
                
Year ended December 31, 2012         
Commercial:           
 Commercial and industrial$ 11 35 1,370 1,416  40 1.60%$ 38
 Real estate mortgage  47 219 1,907 2,173  12 1.57   226
 Real estate construction  12 19 531 562  10 1.69   19
 Lease financing  - - 4 4  - -   -
 Foreign  - - 19 19  - -   -
  Total commercial  70 273 3,831 4,174  62 1.58   283
Consumer:           
 Real estate 1-4 family first mortgage  1,371 1,302 5,822 8,495  547 3.00   2,379
 Real estate 1-4 family junior lien mortgage  79 244 756 1,079  512 3.70   313
 Credit card  - 241 - 241  - 10.85   241
 Automobile   5 54 265 324  50 6.90   56
 Other revolving credit and installment  - 1 22 23  5 4.29   2
 Trial modifications (6)  - - 666 666  - -   -
  Total consumer  1,455 1,842 7,531 10,828  1,114 3.78   2,991
   Total$ 1,525 2,115 11,362 15,002  1,176 3.59%$ 3,274
                
Year ended December 31, 2011         
Commercial:           
 Commercial and industrial$ 166 64 2,412 2,642  84 3.13%$ 69
 Real estate mortgage  113 146 1,894 2,153  24 1.46   160
 Real estate construction  29 114 421 564  26 0.81   125
 Lease financing  - - 57 57  - -   -
 Foreign  - - 22 22  - -   -
  Total commercial  308 324 4,806 5,438  134 1.55   354
Consumer:           
 Real estate 1-4 family first mortgage  1,629 1,908 934 4,471  293 3.27   3,322
 Real estate 1-4 family junior lien mortgage  98 559 197 854  28 4.34   654
 Credit card  - 336 - 336  2 10.77   260
 Automobile   73 115 3 191  23 6.39   177
 Other revolving credit and installment  1 4 4 9  1 5.00   4
 Trial modifications (6)  - - 651 651  - -   -
  Total consumer  1,801 2,922 1,789 6,512  347 4.00   4,417
   Total$ 2,109 3,246 6,595 11,950  481 3.82%$ 4,771
                
(1) Amounts represent the recorded investment in loans after recognizing the effects of the TDR, if any. TDRs may have multiple types of concessions, but are presented only once in the first modification type based on the order presented in the table above. The reported amounts include loans remodified of $3.1 billion, $3.9 billion and $496 million, for the years ended December 31, 2013, 2012 and 2011, respectively, which reflect the impact of the prospective adoption of the OCC guidance issued in 2012.
(2)Principal modifications include principal forgiveness at the time of the modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with a zero percent contractual interest rate.
(3)Other concessions include loan renewals, term extensions and other interest and noninterest adjustments, but exclude modifications that also forgive principal and/or reduce the interest rate. Years ended December 2013 and 2012 includes $4.0 billion and $5.2 billion of consumer loans discharged in bankruptcy, respectively, as a result of the OCC guidance implementation. The OCC guidance issued in third quarter 2012 required consumer loans discharged in bankruptcy to be classified as TDRs, as well as written down to net realizable collateral value.
(4)Charge-offs include write-downs of the investment in the loan in the period it is contractually modified. The amount of charge-off will differ from the modification terms if the loan has been charged down prior to the modification based on our policies. In addition, there may be cases where we have a charge-off/down with no legal principal modification. Modifications resulted in legally forgiving principal (actual, contingent or deferred) of $393 million, $495 million and $577 million for the years ended December 31, 2013, 2012 and 2011, respectively.
(5)Reflects the effect of reduced interest rates on loans with principal or interest rate reduction primary modification type.
(6)Trial modifications are granted a delay in payments due under the original terms during the trial payment period. However, these loans continue to advance through delinquency status and accrue interest according to their original terms. Any subsequent permanent modification generally includes interest rate related concessions; however, the exact concession type and resulting financial effect are usually not known until the loan is permanently modified. Trial modifications for the period are presented net of previously reported trial modifications that became permanent in the current period.
  

us-gaap:TroubledDebtRestructuringsOnFinancingReceivablesTableTextBlock