Annual report pursuant to Section 13 and 15(d)

Outstanding Loans and Leases (Tables)

v2.4.0.6
Outstanding Loans and Leases (Tables)
12 Months Ended
Dec. 31, 2012
Loans and Leases Receivable, Net of Deferred Income [Abstract]  
Loans And Leases Outstanding [Table Text Block]
The following tables present total outstanding loans and leases and an aging analysis for the Corporation’s Home Loans, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at December 31, 2012 and 2011.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
(Dollars in millions)
30-59 Days Past Due (1)
 
60-89 Days Past Due (1)
 
90 Days or
More
Past Due (2)
 
Total Past
Due 30 Days
or More
 
Total Current or Less Than 30 Days Past Due (3)
 
Purchased
Credit-impaired
(4)
 
Loans Accounted for Under the Fair Value Option
 
Total
Outstandings
Home loans
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage (5)
$
2,274

 
$
806

 
$
6,227

 
$
9,307

 
$
160,809

 
 
 
 
 
$
170,116

Home equity
273

 
146

 
591

 
1,010

 
59,841

 
 
 
 
 
60,851

Legacy Assets & Servicing portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
2,891

 
1,696

 
26,494

 
31,081

 
33,247

 
$
8,737

 
 
 
73,065

Home equity
607

 
356

 
1,444

 
2,407

 
36,191

 
8,547

 
 
 
47,145

Discontinued real estate (6)
48

 
19

 
234

 
301

 
757

 
8,834

 
 
 
9,892

Credit card and other consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card
729

 
582

 
1,437

 
2,748

 
92,087

 
 
 
 
 
94,835

Non-U.S. credit card
106

 
85

 
212

 
403

 
11,294

 
 
 
 
 
11,697

Direct/Indirect consumer (7)
569

 
239

 
573

 
1,381

 
81,824

 
 
 
 
 
83,205

Other consumer (8)
48

 
19

 
4

 
71

 
1,557

 
 
 
 
 
1,628

Total consumer loans
7,545

 
3,948

 
37,216

 
48,709

 
477,607

 
26,118

 
 
 
552,434

Consumer loans accounted for under the fair value option (9)
 

 
 

 
 

 
 

 
 

 
 

 
$
1,005

 
1,005

Total consumer
7,545

 
3,948

 
37,216

 
48,709

 
477,607

 
26,118

 
1,005

 
553,439

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
323

 
133

 
639

 
1,095

 
196,031

 
 
 
 
 
197,126

Commercial real estate (10)
79

 
144

 
983

 
1,206

 
37,431

 
 
 
 
 
38,637

Commercial lease financing
84

 
79

 
30

 
193

 
23,650

 
 
 
 
 
23,843

Non-U.S. commercial
2

 

 

 
2

 
74,182

 
 
 
 
 
74,184

U.S. small business commercial
101

 
75

 
168

 
344

 
12,249

 
 
 
 
 
12,593

Total commercial loans
589

 
431

 
1,820

 
2,840

 
343,543

 
 
 
 
 
346,383

Commercial loans accounted for under the fair value option (9)
 

 
 

 
 

 
 

 
 

 
 

 
7,997

 
7,997

Total commercial
589

 
431

 
1,820

 
2,840

 
343,543

 
 
 
7,997

 
354,380

Total loans and leases
$
8,134

 
$
4,379

 
$
39,036

 
$
51,549

 
$
821,150

 
$
26,118

 
$
9,002

 
$
907,819

Percentage of outstandings
0.90
%
 
0.48
%
 
4.30
%
 
5.68
%
 
90.45
%
 
2.88
%
 
0.99
%
 
 

(1) 
Home loans 30-59 days past due includes $2.3 billion of fully-insured loans and $702 million of nonperforming loans. Home loans 60-89 days past due includes $1.3 billion of fully-insured loans and $558 million of nonperforming loans.
(2) 
Home loans includes $22.2 billion of fully-insured loans.
(3) 
Home loans includes $5.5 billion and direct/indirect consumer includes $63 million of nonperforming loans.
(4) 
PCI loan amounts are shown gross of the valuation allowance.
(5) 
Total outstandings includes non-U.S. residential mortgage loans of $93 million.
(6) 
Total outstandings includes $8.8 billion of pay option loans and $1.1 billion of subprime loans. The Corporation no longer originates these products.
(7) 
Total outstandings includes dealer financial services loans of $35.9 billion, consumer lending loans of $4.7 billion, U.S. securities-based lending margin loans of $28.3 billion, student loans of $4.8 billion, non-U.S. consumer loans of $8.3 billion and other consumer loans of $1.2 billion.
(8) 
Total outstandings includes consumer finance loans of $1.4 billion, other non-U.S. consumer loans of $5 million and consumer overdrafts of $177 million.
(9) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $147 million and discontinued real estate loans of $858 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion and non-U.S. commercial loans of $5.7 billion. For additional information, see Note 21 – Fair Value Measurements and Note 22 – Fair Value Option.
(10) 
Total outstandings includes U.S. commercial real estate loans of $37.2 billion and non-U.S. commercial real estate loans of $1.5 billion.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
(Dollars in millions)
30-59 Days
Past Due
(1)
 
60-89 Days Past Due (1)
 
90 Days or
More
Past Due
(2)
 
Total Past
Due 30 Days
or More
 
Total Current or Less Than 30 Days Past Due (3)
 
Purchased
Credit-impaired
(4)
 
Loans Accounted for Under the Fair Value Option
 
Total Outstandings
Home loans
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage (5)
$
2,151

 
$
751

 
$
3,017

 
$
5,919

 
$
172,418

 
 
 
 

 
$
178,337

Home equity
260

 
155

 
429

 
844

 
66,211

 
 
 
 

 
67,055

Legacy Assets & Servicing portfolio
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
3,195

 
2,174

 
32,167

 
37,536

 
36,451

 
$
9,966

 
 

 
83,953

Home equity
845

 
508

 
1,735

 
3,088

 
42,578

 
11,978

 
 

 
57,644

Discontinued real estate (6)
65

 
24

 
351

 
440

 
798

 
9,857

 
 

 
11,095

Credit card and other consumer
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. credit card
981

 
772

 
2,070

 
3,823

 
98,468

 
 
 
 

 
102,291

Non-U.S. credit card
148

 
120

 
342

 
610

 
13,808

 
 
 
 

 
14,418

Direct/Indirect consumer (7)
805

 
338

 
779

 
1,922

 
87,791

 
 
 
 

 
89,713

Other consumer (8)
55

 
21

 
17

 
93

 
2,595

 
 
 
 

 
2,688

Total consumer loans
8,505

 
4,863

 
40,907

 
54,275

 
521,118

 
31,801

 
 

607,194

Consumer loans accounted for under the fair value option (9)
 
 
 
 
 
 
 
 
 
 
 
 
$
2,190


2,190

Total consumer
8,505

 
4,863

 
40,907

 
54,275

 
521,118

 
31,801

 
2,190

 
609,384

Commercial
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. commercial
352

 
166

 
866

 
1,384

 
178,564

 
 
 
 

 
179,948

Commercial real estate (10)
288

 
118

 
1,860

 
2,266

 
37,330

 
 
 
 

 
39,596

Commercial lease financing
78

 
15

 
22

 
115

 
21,874

 
 
 
 

 
21,989

Non-U.S. commercial
24

 

 

 
24

 
55,394

 
 
 
 

 
55,418

U.S. small business commercial
150

 
106

 
272

 
528

 
12,723

 
 
 
 

 
13,251

Total commercial loans
892

 
405

 
3,020

 
4,317

 
305,885

 
 
 
 

 
310,202

Commercial loans accounted for under the fair value option (9)
 
 
 
 
 
 
 
 
 
 
 
 
6,614

 
6,614

Total commercial
892

 
405

 
3,020

 
4,317

 
305,885

 
 
 
6,614

 
316,816

Total loans and leases
$
9,397

 
$
5,268

 
$
43,927

 
$
58,592

 
$
827,003

 
$
31,801

 
$
8,804

 
$
926,200

Percentage of outstandings
1.02
%
 
0.57
%
 
4.74
%
 
6.33
%
 
89.29
%
 
3.43
%
 
0.95
%
 
 


(1) 
Home loans 30-59 days past due includes $2.2 billion of fully-insured loans and $372 million of nonperforming loans. Home loans 60-89 days past due includes $1.4 billion of fully-insured loans and $398 million of nonperforming loans.
(2) 
Home loans includes $21.2 billion of fully-insured loans.
(3) 
Home loans includes $1.8 billion and direct/indirect consumer includes $7 million of nonperforming loans.
(4) 
PCI loan amounts are shown gross of the valuation allowance.
(5) 
Total outstandings includes non-U.S. residential mortgage loans of $85 million.
(6) 
Total outstandings includes $9.9 billion of pay option loans and $1.2 billion of subprime loans. The Corporation no longer originates these products.
(7) 
Total outstandings includes dealer financial services loans of $43.0 billion, consumer lending loans of $8.0 billion, U.S. securities-based lending margin loans of $23.6 billion, student loans of $6.0 billion, non-U.S. consumer loans of $7.6 billion and other consumer loans of $1.5 billion.
(8) 
Total outstandings includes consumer finance loans of $1.7 billion, other non-U.S. consumer loans of $929 million and consumer overdrafts of $103 million.
(9) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $906 million and discontinued real estate loans of $1.3 billion. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.2 billion and non-U.S. commercial loans of $4.4 billion. For additional information, see Note 21 – Fair Value Measurements and Note 22 – Fair Value Option.
(10) 
Total outstandings includes U.S. commercial real estate loans of $37.8 billion and non-U.S. commercial real estate loans of $1.8 billion.
Schedule of Financing Receivables, Non Accrual Status [Table Text Block]
The table below presents the Corporation’s nonperforming loans and leases including nonperforming TDRs and loans accruing past due 90 days or more at December 31, 2012 and 2011. Nonperforming LHFS are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. See Note 1 – Summary of Significant Accounting Principles for further information on the criteria for classification as nonperforming.
 
 
 
 
 
 
 
 
Credit Quality
 
 
 
 
 
 
 
 
 
 
 
December 31
 
Nonperforming Loans and Leases (1)
 
Accruing Past Due
90 Days or More
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Home loans
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
Residential mortgage (2)
$
3,190

 
$
2,414

 
$
3,984

 
$
883

Home equity
1,265

 
439

 

 

Legacy Assets & Servicing portfolio
 

 
 

 
 

 
 
Residential mortgage (2)
11,618

 
13,556

 
18,173

 
20,281

Home equity
3,016

 
2,014

 

 

Discontinued real estate
248

 
290

 

 

Credit card and other consumer
 

 
 

 
 
 
 
U.S. credit card
n/a

 
n/a

 
1,437

 
2,070

Non-U.S. credit card
n/a

 
n/a

 
212

 
342

Direct/Indirect consumer
92

 
40

 
545

 
746

Other consumer
2

 
15

 
2

 
2

Total consumer
19,431

 
18,768

 
24,353

 
24,324

Commercial
 

 
 

 
 

 
 

U.S. commercial
1,484

 
2,174

 
65

 
75

Commercial real estate
1,513

 
3,880

 
29

 
7

Commercial lease financing
44

 
26

 
15

 
14

Non-U.S. commercial
68

 
143

 

 

U.S. small business commercial
115

 
114

 
120

 
216

Total commercial
3,224

 
6,337

 
229

 
312

Total consumer and commercial
$
22,655

 
$
25,105

 
$
24,582

 
$
24,636

(1) 
Nonperforming loan balances do not include nonaccruing TDRs removed from the PCI portfolio prior to January 1, 2010 of $521 million and $477 million at December 31, 2012 and 2011.
(2) 
Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2012 and 2011, residential mortgage includes $17.8 billion and $17.0 billion of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and $4.4 billion and $4.2 billion of loans on which interest is still accruing.
n/a = not applicable
Financing Receivable Credit Quality Indicators [Table Text Block]
The following tables present certain credit quality indicators for the Corporation’s Home Loans, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at December 31, 2012 and 2011.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home Loans – Credit Quality Indicators (1)
 
 
 
December 31, 2012
(Dollars in millions)
Core Portfolio Residential
Mortgage (2)
 
Legacy Assets & Servicing Residential
Mortgage
(2)
 
Countrywide Residential Mortgage PCI
 
Core Portfolio Home Equity (2)
 
Legacy Assets & Servicing Home Equity (2)
 
Countrywide Home Equity PCI
 
Legacy Assets & Servicing Discontinued
Real Estate
(2)
 
Countrywide
Discontinued
Real Estate
PCI
Refreshed LTV (3)
 

 
 

 
 

 
 

 
 
 
 
 
 

 
 

Less than 90 percent
$
80,585

 
$
19,904

 
$
3,516

 
$
44,971

 
$
15,907

 
$
2,050

 
$
719

 
$
5,093

Greater than 90 percent but less than 100 percent
8,891

 
5,000

 
1,312

 
5,825

 
4,507

 
788

 
102

 
1,067

Greater than 100 percent
12,984

 
16,226

 
3,909

 
10,055

 
18,184

 
5,709

 
237

 
2,674

Fully-insured loans (4)
67,656

 
23,198

 

 

 

 

 

 

Total home loans
$
170,116

 
$
64,328

 
$
8,737

 
$
60,851

 
$
38,598

 
$
8,547

 
$
1,058

 
$
8,834

Refreshed FICO score
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 620
$
6,366

 
$
13,900

 
$
3,249

 
$
2,586

 
$
5,408

 
$
1,930

 
$
429

 
$
5,471

Greater than or equal to 620 and less than 680
8,561

 
6,006

 
1,381

 
4,500

 
5,885

 
1,500

 
160

 
1,359

Greater than or equal to 680 and less than 740
25,141

 
8,411

 
1,886

 
12,625

 
10,387

 
2,278

 
206

 
1,106

Greater than or equal to 740
62,392

 
12,813

 
2,221

 
41,140

 
16,918

 
2,839

 
263

 
898

Fully-insured loans (4)
67,656

 
23,198

 

 

 

 

 

 

Total home loans
$
170,116

 
$
64,328

 
$
8,737

 
$
60,851

 
$
38,598

 
$
8,547

 
$
1,058

 
$
8,834

(1) 
Excludes $1.0 billion of loans accounted for under the fair value option.
(2) 
Excludes Countrywide PCI loans.
(3) 
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(4) 
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
 
 
 
 
 
 
 
 
Credit Card and Other Consumer – Credit Quality Indicators
 
 
 
December 31, 2012
(Dollars in millions)
U.S. Credit
Card
 
Non-U.S.
Credit Card
 
Direct/Indirect
Consumer
 
Other
Consumer (1)
Refreshed FICO score
 

 
 

 
 

 
 

Less than 620
$
6,188

 
$

 
$
1,896

 
$
668

Greater than or equal to 620 and less than 680
13,947

 

 
3,367

 
301

Greater than or equal to 680 and less than 740
37,167

 

 
9,592

 
232

Greater than or equal to 740
37,533

 

 
25,164

 
212

Other internal credit metrics (2, 3, 4)

 
11,697

 
43,186

 
215

Total credit card and other consumer
$
94,835

 
$
11,697

 
$
83,205

 
$
1,628


(1) 
87 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
(2) 
Other internal credit metrics may include delinquency status, geography or other factors.
(3) 
Direct/indirect consumer includes $36.5 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $4.8 billion of loans the Corporation no longer originates.
(4) 
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2012, 97 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and two percent was 90 days or more past due.
 
 
 
 
 
 
 
 
 
 
Commercial – Credit Quality Indicators (1)
 
 
 
December 31, 2012
(Dollars in millions)
U.S.
Commercial
 
Commercial
Real Estate
 
Commercial
Lease
Financing
 
Non-U.S.
Commercial
 
U.S. Small
Business
Commercial (2)
Risk ratings
 

 
 

 
 

 
 

 
 

Pass rated
$
189,602

 
$
34,968

 
$
22,874

 
$
72,688

 
$
1,690

Reservable criticized
7,524

 
3,669

 
969

 
1,496

 
573

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 

Less than 620
 

 
 

 
 

 
 

 
400

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
580

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,553

Greater than or equal to 740
 
 
 
 
 
 
 
 
2,496

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
5,301

Total commercial
$
197,126

 
$
38,637

 
$
23,843

 
$
74,184

 
$
12,593

(1) 
Excludes $8.0 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $366 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2012, 98 percent of the balances where internal credit metrics are used were current or less than 30 days past due.
(3) 
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) 
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home Loans – Credit Quality Indicators (1)
 
 
 
December 31, 2011
(Dollars in millions)
Core Portfolio Residential
Mortgage (2)
 
Legacy Assets & Servicing Residential
Mortgage
(2)
 
Countrywide Residential Mortgage PCI
 
Core Portfolio Home Equity (2)
 
Legacy Assets & Servicing Home Equity (2)
 
Countrywide Hone Equity PCI
 
Legacy Assets & Servicing Discontinued
Real Estate
(2)
 
Countrywide
Discontinued
Real Estate
PCI
Refreshed LTV (3)
 

 
 

 
 

 
 

 
 
 
 
 
 

 
 

Less than 90 percent
$
80,032

 
$
20,450

 
$
3,821

 
$
46,646

 
$
17,354

 
$
2,253

 
$
895

 
$
5,953

Greater than 90 percent but less than 100 percent
11,838

 
5,847

 
1,468

 
6,988

 
4,995

 
1,077

 
122

 
1,191

Greater than 100 percent
17,673

 
22,630

 
4,677

 
13,421

 
23,317

 
8,648

 
221

 
2,713

Fully-insured loans (4)
68,794

 
25,060

 

 

 

 

 

 

Total home loans
$
178,337

 
$
73,987

 
$
9,966

 
$
67,055

 
$
45,666

 
$
11,978

 
$
1,238


$
9,857

Refreshed FICO score (5)
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Less than 620
$
7,020

 
$
17,337

 
$
3,924

 
$
2,843

 
$
7,293

 
$
4,140

 
$
548

 
$
6,275

Greater than or equal to 620 and less than 680
9,331

 
6,537

 
1,381

 
4,704

 
6,866

 
1,969

 
175

 
1,279

Greater than or equal to 680 and less than 740
26,569

 
9,439

 
2,036

 
13,561

 
11,798

 
2,538

 
228

 
1,223

Greater than or equal to 740
66,623

 
15,614

 
2,625

 
45,947

 
19,709

 
3,331

 
287

 
1,080

Fully-insured loans (4)
68,794

 
25,060

 

 

 

 

 

 

Total home loans
$
178,337

 
$
73,987

 
$
9,966

 
$
67,055

 
$
45,666

 
$
11,978

 
$
1,238

 
$
9,857

(1) 
Excludes $2.2 billion of loans accounted for under the fair value option.
(2) 
Excludes Countrywide PCI loans.
(3) 
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(4) 
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
(5) 
During 2012, refreshed home equity FICO metrics reflected an updated scoring model that is more representative of the credit risk of the Corporation’s borrowers. Prior period amounts were adjusted to reflect these updates.
 
 
 
 
 
 
 
 
Credit Card and Other Consumer – Credit Quality Indicators
 
 
 
December 31, 2011
(Dollars in millions)
U.S. Credit
Card
 
Non-U.S.
Credit Card
 
Direct/Indirect
Consumer
 
Other
Consumer (1)
Refreshed FICO score
 

 
 

 
 

 
 

Less than 620
$
8,172

 
$

 
$
3,325

 
$
802

Greater than or equal to 620 and less than 680
15,474

 

 
4,665

 
348

Greater than or equal to 680 and less than 740
39,525

 

 
12,351

 
262

Greater than or equal to 740
39,120

 

 
29,965

 
244

Other internal credit metrics (2, 3, 4)

 
14,418

 
39,407

 
1,032

Total credit card and other consumer
$
102,291

 
$
14,418

 
$
89,713

 
$
2,688

(1) 
96 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
(2) 
Other internal credit metrics may include delinquency status, geography or other factors.
(3) 
Direct/indirect consumer includes $31.1 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $6.0 billion of loans the Corporation no longer originates.
(4) 
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2011, 96 percent of this portfolio was current or less than 30 days past due, two percent was 30-89 days past due and two percent was 90 days or more past due.
 
 
 
 
 
 
 
 
 
 
Commercial – Credit Quality Indicators (1)
 
 
 
December 31, 2011
(Dollars in millions)
U.S.
Commercial
 
Commercial
Real Estate
 
Commercial
Lease
Financing
 
Non-U.S.
Commercial
 
U.S. Small
Business
Commercial (2)
Risk ratings
 

 
 

 
 

 
 

 
 

Pass rated
$
169,599

 
$
28,602

 
$
20,850

 
$
53,945

 
$
2,392

Reservable criticized
10,349

 
10,994

 
1,139

 
1,473

 
836

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 
Less than 620
 
 
 
 
 
 
 
 
562

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
624

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,612

Greater than or equal to 740
 
 
 
 
 
 
 
 
2,438

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
4,787

Total commercial
$
179,948

 
$
39,596

 
$
21,989

 
$
55,418

 
$
13,251


(1) 
Excludes $6.6 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $491 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2011, 97 percent of the balances where internal credit metrics are used were current or less than 30 days past due.
(3) 
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) 
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
Impaired Financing Receivables [Table Text Block]
The table below presents impaired loans in the Corporation’s Home Loans portfolio segment at and for the years ended December 31, 2012 and 2011 and includes primarily loans managed by Legacy Assets & Servicing. Certain impaired home loans do not have a related allowance as the current valuation of these impaired loans exceeded the carrying value.
 
 
 
 
 
 
 
 
 
 
Impaired Loans – Home Loans
 
 
 
 
 
December 31, 2012
 
2012
(Dollars in millions)
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
 
Average
Carrying
Value
 
Interest
Income
Recognized (1)
With no recorded allowance
 

 
 

 
 

 
 

 
 

Residential mortgage
$
19,758

 
$
14,707

 
n/a

 
$
10,697

 
$
358

Home equity
2,624

 
1,103

 
n/a

 
734

 
49

Discontinued real estate
468

 
260

 
n/a

 
240

 
8

With an allowance recorded
 
 
 
 
 

 
 
 
 
Residential mortgage
14,080

 
13,051

 
$
1,233

 
11,439

 
417

Home equity
1,256

 
1,022

 
448

 
1,145

 
44

Discontinued real estate
143

 
107

 
19

 
136

 
6

Total
 

 
 

 
 

 
 

 
 

Residential mortgage
$
33,838

 
$
27,758

 
$
1,233

 
$
22,136

 
$
775

Home equity
3,880

 
2,125

 
448

 
1,879

 
93

Discontinued real estate
611

 
367

 
19

 
376

 
14

 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
 
2011
With no recorded allowance
 
 
 
 
 
 
 
 
 
Residential mortgage
$
10,907

 
$
8,168

 
n/a

 
$
6,285

 
$
233

Home equity
1,747

 
479

 
n/a

 
442

 
23

Discontinued real estate
421

 
240

 
n/a

 
222

 
8

With an allowance recorded
 
 
 
 
 
 
 
 
 
Residential mortgage
12,296

 
11,119

 
$
1,295

 
9,379

 
319

Home equity
1,551

 
1,297

 
622

 
1,357

 
34

Discontinued real estate
213

 
159

 
29

 
173

 
6

Total
 
 
 
 
 
 
 
 
 
Residential mortgage
$
23,203

 
$
19,287

 
$
1,295

 
$
15,664

 
$
552

Home equity
3,298

 
1,776

 
622

 
1,799

 
57

Discontinued real estate
634

 
399

 
29

 
395

 
14

(1) 
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
n/a = not applicable
Accretable Yield Activity [Table Text Block]
The table below shows activity for the accretable yield on Countrywide consumer PCI loans. Reclassifications from nonaccretable difference primarily result when there is a change in expected cash flows due to various factors, including changes in interest rates on variable-rate loans and prepayment assumptions. Changes in the prepayment assumption affect the expected remaining life of the portfolio which results in a change to the amount of future interest cash flows.
 
 

Rollforward of Accretable Yield
 
 
 
(Dollars in millions)
 

Accretable yield, January 1, 2011
$
5,481

Accretion
(1,285
)
Disposals/transfers
(118
)
Reclassifications from nonaccretable difference
912

Accretable yield, December 31, 2011
4,990

Accretion
(1,034
)
Disposals/transfers
(109
)
Reclassifications from nonaccretable difference
797

Accretable yield, December 31, 2012
$
4,644

Residential Mortgage [Member]
 
Loans and Leases Receivable, Net of Deferred Income [Abstract]  
Remaining Unpaid Principal Balance, Carrying Amount And Excluding Valuation Reserve [Table Text Block]
The table below presents the December 31, 2012 and 2011 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of home loans that were modified in TDRs during 2012 and 2011, and net charge-offs that were recorded during the period in which the modification occurred. The following Home Loans portfolio segment tables include loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period. These TDRs are managed by Legacy Assets & Servicing.
 
 
 
 
 
 
 
 
 
 
Home Loans – TDRs Entered into During 2012 and 2011 (1)
 
 
 
December 31, 2012
 
2012
(Dollars in millions)
Unpaid Principal Balance
 
Carrying Value
 
Pre-modification Interest Rate
 
Post-modification Interest Rate
 
Net Charge-offs
Residential mortgage
$
14,929

 
$
12,143

 
5.52
%
 
4.70
%
 
$
507

Home equity
1,721

 
858

 
5.22

 
4.39

 
716

Discontinued real estate
159

 
85

 
5.21

 
4.35

 
16

Total
$
16,809

 
$
13,086

 
5.49

 
4.66

 
$
1,239

 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
 
2011
Residential mortgage
$
11,623

 
$
9,903

 
5.94
%
 
5.16
%
 
$
299

Home equity
1,112

 
556

 
6.58

 
5.25

 
239

Discontinued real estate
141

 
88

 
6.68

 
5.08

 
9

Total
$
12,876

 
$
10,547

 
6.01

 
5.17

 
$
547


(1) 
TDRs entered into during 2012 include principal forgiveness as follows: residential mortgage modifications of $755 million, home equity modifications of $9 million and discontinued real estate modifications of $23 million. Prior to 2012, the principal forgiveness amount was not significant.
Summary of Troubled Debt Restructuring Note, Debtor [Table Text Block]
The table below presents the December 31, 2012 and 2011 carrying value for home loans that were modified in TDRs during 2012 and 2011 by type of modification.
 
 
 
 
 
 
 
 
Home Loans – Modification Programs
 
 
 
TDRs Entered into During 2012
(Dollars in millions)
Residential Mortgage
 
 Home Equity
 
 Discontinued Real Estate
 
Total Carrying Value
Modifications under government programs
 
 
 
 
 
 
 
Contractual interest rate reduction
$
638

 
$
78

 
$
4

 
$
720

Principal and/or interest forbearance
49

 
31

 
2

 
82

Other modifications (1)
37