Capital One 2013 Annual Report Download - page 195

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Table 4.6: Consumer Banking: Net Charge-offs
Year Ended December 31,
2013 2012
(Dollars in millions) Amount Rate(1) Amount Rate(1)
Net charge-offs:
Auto ........................................................... $546 1.85% $414 1.66%
Home Loan ..................................................... 16 0.04 52 0.12
Retail Banking ................................................... 54 1.46 65 1.57
Total Consumer Banking .......................................... $616 0.85% $531 0.74%
(1) Calculated for each loan category by dividing net charge-offs for the period by average loans held for investment during the period.
Home Loan
Our home loan portfolio consists of both first-lien and second-lien residential mortgage loans. In evaluating the
credit quality and risk of our home loan portfolio, we continually monitor a variety of mortgage loan
characteristics that may affect the default experience on our overall home loan portfolio, such as vintage,
geographic concentrations, lien priority and product type. Certain loan concentrations have experienced higher
delinquency rates as a result of the significant decline in home prices since the home price peak in 2006 and the
rise in unemployment. These loan concentrations include loans originated between 2006 and 2008 in an
environment of decreasing home sales, broadly declining home prices and more relaxed underwriting standards
and loans. The following table presents the distribution of our home loan portfolio as of December 31, 2013 and
2012, based on selected key risk characteristics.
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