Capital One 2013 Annual Report Download - page 212

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Securitization-related VIEs
In a securitization transaction, assets from our balance sheet are transferred to a trust we establish, which
typically meets the definition of a VIE. Our continuing involvement in the majority of our securitization
transactions consists primarily of holding certain retained interests and acting as the primary servicer. We have
the option to repurchase receivables from the trust if the outstanding balance of the receivables falls to a level
where the cost exceeds the benefits of servicing such receivables. In some cases, we are contractually required to
exercise the repurchase option if the primary servicer fails to do so. We also may have exposure associated with
contractual obligations to repurchase previously transferred loans due to breaches of representations and
warranties. See “Note 20—Commitments, Contingencies, Guarantees, and Others” for information related to
reserves we have established for our potential mortgage representation and warranty exposure.
The table below presents the securitization-related VIEs in which we had continuing involvement as of
December 31, 2013 and December 31, 2012:
Table 6.2: Continuing Involvement in Securitization-Related VIEs
Non-Mortgage Mortgage
(Dollars in millions)
Credit
Card
Other
Loan
Option
Arm
GreenPoint
HELOCs
GreenPoint
Manufactured
Housing
December 31, 2013:
Securities held by third-party investors ................ $10,289 $ 0 $2,320 $122 $ 994
Receivables in the trust ............................ 39,548 0 2,399 116 1,000
Cash balance of spread or reserve accounts ............ 3 0 8 N/A 144
Retained interests ................................. Yes No Yes Yes Yes
Servicing retained ................................ Yes No Yes(1) Yes(1) No(2)
Amortization event(3) .............................. No No No No No
December 31, 2012:
Securities held by third-party investors ................ $11,347 $ 13 $2,702 $158 $1,117
Receivables in the trust ............................ 43,811 19 2,794 151 1,123
Cash balance of spread or reserve accounts ............ 0 0 8 0 164
Retained interests ................................. Yes Yes Yes Yes Yes
Servicing retained ................................ Yes Yes Yes
(1) Yes(1) No(2)
Amortization event(3) .............................. No No No Yes No
(1) We continue to service some of the outstanding balance of securitized mortgage receivables.
(2) The core servicing activities for the manufactured housing securitizations are done by a third party.
(3) Amortization events vary according to each specific trust agreement but generally are triggered by declines in performance or credit
metrics such as charge-off rates or delinquency rates below certain predetermined thresholds. Generally, the occurrence of an
amortization event changes the sequencing and amount of trust-related cash flows to the benefit of senior noteholders.
Non-Mortgage Securitizations
As of December 31, 2013 and 2012, we were deemed to be the primary beneficiary of all of our non-mortgage
securitization trusts. Accordingly, all of these trusts have been consolidated in our financial statements.
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