-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O/8MEWbQV+14U7pHqRdKxya9SRfTC28mTPw8WLY5OPYjCa4BnHIEGZ2BycdyjSFT frlktYB7i/VynQ0HZW7XEA== 0000914121-07-000233.txt : 20070129 0000914121-07-000233.hdr.sgml : 20070129 20070129170413 ACCESSION NUMBER: 0000914121-07-000233 CONFORMED SUBMISSION TYPE: FWP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070129 DATE AS OF CHANGE: 20070129 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: WELLS FARGO ASSET SECURITIES CORP CENTRAL INDEX KEY: 0001011663 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 521972128 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: FWP SEC ACT: 1934 Act SEC FILE NUMBER: 333-137620 FILM NUMBER: 07561778 BUSINESS ADDRESS: STREET 1: 7485 NEW HORIZON WAY CITY: FREDERICK STATE: MD ZIP: 21703 BUSINESS PHONE: 3018468881 MAIL ADDRESS: STREET 1: 7485 NEW HORIZON WAY CITY: FREDERIDK STATE: MD ZIP: 21703 FORMER COMPANY: FORMER CONFORMED NAME: NORWEST ASSET SECURITIES CORP DATE OF NAME CHANGE: 19960717 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WELLS FARGO ASSET SECURITIES CORP CENTRAL INDEX KEY: 0001011663 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 521972128 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: FWP BUSINESS ADDRESS: STREET 1: 7485 NEW HORIZON WAY CITY: FREDERICK STATE: MD ZIP: 21703 BUSINESS PHONE: 3018468881 MAIL ADDRESS: STREET 1: 7485 NEW HORIZON WAY CITY: FREDERIDK STATE: MD ZIP: 21703 FORMER COMPANY: FORMER CONFORMED NAME: NORWEST ASSET SECURITIES CORP DATE OF NAME CHANGE: 19960717 FWP 1 we7102170-2a_fwp.txt FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 File No.: 333-137620 [WELLS FARGO LOGO] Wells Fargo & Company Wells Fargo Home Mortgage ------------------------------------ Prime ------------------------------------ 2007 [WELLS FARGO LOGO] Forward Looking Statements This presentation includes forward-looking statements about Wells Fargo. Broadly speaking, forward-looking statements include o projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure, credit quality or other financial items o descriptions of plans or objectives of management for future operations, products or services, including pending acquisitions o forecasts of future economic performance and o descriptions of assumptions underlying or relating to any of the foregoing. Forward-looking statements discuss matters that are not facts, and often include the word "believe," "expect," "anticipate," "intend," "plan," "estimate," "project", "target," "will," "can," "would," "should," "could" or "may." You should not unduly rely on forward-looking statements. They give our expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we do not undertake to update them to reflect changes that occur after the date they are made. There are several factors--many beyond our control--that could cause results to differ significantly from our expectations. Our periodic reports filed with the SEC, Including, our current report on Form 8-K filed on January 17, 2007, our quarterly report on Form 10-Q for the quarter ended September 30, 2006 and our annual report on Form 10-K for the year ended December 31, 2005, describe some of these factors. 2 [WELLS FARGO LOGO] The depositor has filed a registration statement (including prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the depositor has filed with the SEC for more complete information about the depositor and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the depositor or any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-866-835-1033. 3 [WELLS FARGO LOGO] Overview o Wells Fargo is a well-capitalized institution with a long-term enthusiastic commitment to mortgage lending o We offer consistent credit quality and dependable collateral flow o As we strive to improve the borrower experience we will continue to offer investors the same relatively conservative credit stance o Our purpose has always been the cultivation and appreciation of long-term liquidity from our valued investor group 4 [WELLS FARGO LOGO] SEC Registered Prime Shelf Programs o WFMBS- Prime Fixed and ARM Collateral o WFALT- Prime Alt-A Fixed and ARM Collateral 5 [WELLS FARGO LOGO] WFMBS Securitized Product Line o Fixed 30 o Fixed 15 o Fixed 30 Relocation o 3/1, 5/1, 7/1, 10/1 CMT or Libor ARMs o Relationship ARMs 6 [WELLS FARGO LOGO] WFHM Alt-A: Expanded Financing Alternatives (EFA) Loan Originations o New EFA program initiated July 10, 2006 o EFA now incorporates both Prime Alt-A and Alt-A Minus 7 [WELLS FARGO LOGO] Prime Alt-A Securitized Products o Fixed 15/30 o 3/1 CMT and Libor ARMs o 5/1 CMT and Libor ARMs o 7/1 CMT and Libor ARMs o 10/1 CMT and Libor ARMs o Fixed 40 Yr w/30 yr balloon 8 [WELLS FARGO LOGO] Prime Subordination Levels 4th Quarter 2006 --------------------------------------- Product Type S&P Levels --------------------------------------- 5/1 ARMs 4.50% --------------------------------------- 7/1 ARMs 4.25% --------------------------------------- 10/1 ARMs 4.10% --------------------------------------- Fix 15 2.00% --------------------------------------- Fix 30 4.00% --------------------------------------- Fix 30 Relo 2.40% --------------------------------------- 9 [WELLS FARGO LOGO] Prime Alt-A Subordination Levels January 2007 --------------------------------------- Product Type S&P Levels --------------------------------------- 5/1 ARMs 6.50% --------------------------------------- 10/1 ARMs 7.00% --------------------------------------- Fixed 7.00% --------------------------------------- 10 [WELLS FARGO LOGO] WFHM Non-Agency Collateral Profiles ---------------------------------------------------------- Product Prime ---------------------------------------------- Prime Fix-30 5/1 10/1 Alt-A ---------------------------------------------------------- Settle Date Dec-06 Dec-06 Dec-06 Dec-06 ---------------------------------------------------------- WAC 6.55% 6.41% 6.45% 6.72% ---------------------------------------------------------- WALTV 77% 80% 77% 72% ---------------------------------------------------------- WAFICO 743 742 745 735 ---------------------------------------------------------- California % 33% 53% 33% 24% ---------------------------------------------------------- Single Family 90% 87% 90% 78% ---------------------------------------------------------- Full Doc 54% 46% 41% 29% ---------------------------------------------------------- Primary 93% 92% 93% 59% ---------------------------------------------------------- Cash Out 23% 21% 16% 24% ---------------------------------------------------------- Investor Property 0% 1% 0% 24% ---------------------------------------------------------- 11 [WELLS FARGO LOGO] Wells Fargo The Next Stage(R) [WELLS FARGO LOGO] Appendix: Wells Fargo & Company Wells Fargo Home Mortgage Additional Information [WELLS FARGO LOGO] A Unique Company o The 13th largest financial services company in the world o Wells Fargo Bank, N.A. is the only Aaa* rated bank in the U.S. Our Vision "We want to satisfy all of our customer's financial needs, help them succeed financially, be the premier provider of financial services in every one of our markets, and be known as one of America's great companies." Market Cap (US$bn) Citigroup 274 Ind & Comm Bk 253 Bank of America 240 HSBC 211 AIG 186 Berkshire Hathaway 170 JPMorgan Chase 168 Bank of China 167 China Const Bank 146 Mitsubishi UFJ 133 UBS 128 Royal Bank of Scotland 124 - ------------------------------------ Wells Fargo & Co. 120 - ------------------------------------ Market data as of 1/24/07 **Moody's 14 [WELLS FARGO LOGO] [GRAPHIC OMMITTED] [Omitted Graphic repersented by a table below] Broad and Diverse Geographic Presence o Strong retail banking positions in 23 states across the U.S. including some of the nation's highest growth markets o National businesses in mortgage, consumer finance, wholesale banking and private client services 2005-2010 Growth Estimates WF US Markets Average - ------------------------------------------------- Population 8.2% 6.3% Household 8.2% 6.5% Household Income 19.3% 17.4% - ------------------------------------------------- Deposit Market Rank - ------------------- AK #1 AZ #3 CA #3 CO #1 IA #1 ID #1 IL #84 IN #12 MI #25 MN #1 MT #2 ND #1 NE #2 NM #1 NV #2 OR #2 SD #1 TX #4 UT #3 WA #5 WI #6 WY #4 Source: SNL Data, June 2005 15 [WELLS FARGO LOGO] Power Distribution Network [GRAPHIC OMMITTED] [Omitted Graphic repersented by a table below] The omitted graphic displays a map of the continental United States dotted with yellow circles representing the concentration of Wells Fargo Banking Stores in a particular area. The dots show significant concentrations in the following states: Arizona California Colorado Idaho Iowa Minnesota New Mexico Oregon Texas Utah Washington Wisconsin US Ranking - ---------- #3 Banking Stores (3,213) #1 Mortgage Stores (1,062) #3 ATMs (6,700) 11 Million Consumer Households 150 Insurance Agency Offices 8.3 Million Active Online Customers #1 Prime Home Equity Lender in Footprint 16 [WELLS FARGO LOGO] [GRAPHIC OMMITTED] [Omitted Graphic repersented by a table below] Fully Diversified Financial Services Company 2000 2005 ---- ---- Commercial Real Estate 4% 4% Consumer Finance 6% 7% Wholesale Banking 10% 7% Home Mortgage/Home Equity 11% 20% Specialized Lending 12% 14% Investment/Insurance 15% 15% Community Banking 42% 33% Net Income* $4.5bn $7.1bn * Represents net income excluding "other" segment 17 [WELLS FARGO LOGO] WFHM Originations - -------------------------------------------------------------------------------- 18 [WELLS FARGO LOGO] WFHM Originations [GRAPHIC OMMITTED] [Omitted Graphic repersented by a table below] #2 Mortgage Originator - --------------------- (US$bn) 00 76.5 01 194.4 02 333.4 03 470.1 04 298.5 05 392.2 06 397.6 19 [WELLS FARGO LOGO] 2006 Funding Mix [GRAPHIC OMMITTED] [Omitted Graphic repersented by a table below] Retail: $159B 40% Correspondent: $189B 47% Wholesale: $50B 13% (1) Market data as of 1/16/07 20 [WELLS FARGO LOGO] WFHM Origination Channels - -------------------------------------------------------------------------------- Retail Originates loans directly to consumers via more than 10,000 mortgage consultants located in over 1,000 Mortgage Stores. Loans are processed and underwritten atbranches or one of 48 MAP centers. Service Delivery Connection (SDC) operation centers. - -------------------------------------------------------------------------------- Centralized Centralized platform for Relocation Borrowers, Affinity Retail Relationships, Joint Ventures, Retention Programs, Employee and Internet originations. - -------------------------------------------------------------------------------- Wholesale Originates loans that are referred from mortgage brokers that sell and process loans to consumers. Mortgage broker clients tend to be smaller in scale, concentrating on sales and marketing functions that require interaction with customers in most cases, Wells Fargo Home Mortgage underwrites and closes loans at one of its 32 Wholesale Processing Centers. - -------------------------------------------------------------------------------- Correspondent Purchases loans from ~1,000 larger mortgage banking and bank clients that originate, underwrite and close mortgage banking and bank clients that originate, underwrite and close mortgage loans before selling them to Wells Fargo. - -------------------------------------------------------------------------------- 21 [WELLS FARGO LOGO] Wells Fargo Home Mortgage Products o Responsible lending - Wells Fargo does not make, purchase or service negative amortization mortgage loan products, including option ARMs or payment option products. - Wells Fargo created Steps To Success(SM) to provide tools and advice to nonprime borrowers to help them manage and improve their credit - Loan origination - complete spectrum of products o Government (FHA / VA) o Fannie Mae / Freddie Mac eligible o Non-Agency Prime o ALT-A o Subprime 22 [WELLS FARGO LOGO] WFHM Servicing - -------------------------------------------------------------------------------- 23 [WELLS FARGO LOGO] WFHM Servicing [GRAPHIC OMMITTED] [Omitted Graphic repersented by a table below] #1 Mortgage Servicer - ----------------------- (US$bn) 00 383 01 462 02 581 03 710 04 805 05 989 06 1366 24 [WELLS FARGO LOGO] Loan Servicing Overview o Portfolio size: $1.3 trillion o Represents more than 5 million homeowners nationwide o Resources to invest in "state-of-the-art" servicing tools o Dedicated subprime collectins and loss mitigation o Recognized leader in servicing industry: - - Freddie Mac - "Tier 1 Platinum Servicer" Rating Agency Reviews Moody's S&P Fitch ------- --- ----- Primary Servicer of Prime Loans SQ1 Strong RPS1 Primary Servicer of ALT-A Loans SQ1 n/a RPS1 Primary Servicer of Subprime Loans SQ1 Strong RPS1 Special Servicer SQ2 Above Average RSS2 Master Servicer (1) Strong RMS1 (1) Wells Fargo Bank, N.A.-Corporate Trust Services - -------------------------------------------------------------------------- Moody's SQ RATINGS DEFINED: Ratings Definition SQ1 Strong combined servicing ability and servicing stability SQ2 Above average combined Servicing ability and servicing stability - -------------------------------------------------------------------------- 25 [WELLS FARGO LOGO] Product Distribution [GRAPHIC OMMITTED] [Omitted Graphic repersented by a table below] % of Non-agency Sales - --------------------- 2002 2003 2004 2005 2006 Prime ARMs 23% 23% 40% 55% 55% Prime Fixed 70% 74% 43% 26% 25% Subprime 6% 2% 10% 13% 7% Alt-A 1% 1% 7% 6% 12% 26 [WELLS FARGO LOGO] Wells Fargo Securitization Programs Distinct Shelf Registrations By Product* o WFMBS - Numeric Series - Prime Fixed Rate - AR Series - ARM o WFALT - PA Series - Prime Alt-A - AM Series - Alt-A Minus o WFHET - Subprime *Wells Fargo Asset Securities Corporation is the securitization depositor and the securities represent rights in the underlying collateral and are not obligations of, or guaranteed by, Wells Fargo Bank, N.A. 27 [WELLS FARGO LOGO] SecuritiesLink(TM) o Data and information for Wells Fargo MBS - Data availability through SecuritiesLink(TM) - Customized SecuritiesLink(TM) profile and reporting - Options for data delivery -- Internet or CD-ROM - Customer service and expertise o Over 11+ years experience in providing MBS data to the market o 24/7 availability - Data and information for Wells Fargo MBS - Static pool reports - www.SecuritiesLink.com ---------------------- 28 Wells Fargo The Next Stage(R) -----END PRIVACY-ENHANCED MESSAGE-----