Capital One 2014 Annual Report Download - page 205

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Unfunded Lending Commitments
We manage the potential risk in credit commitments by limiting the total amount of arrangements, both by individual
customer and in total, by monitoring the size and maturity structure of these portfolios and by applying the same
credit standards for all of our credit activities. Unused credit card lines available to our customers totaled $292.9
billion and $276.7 billion as of December 31, 2014 and 2013, respectively. While these amounts represented the
total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will
access their entire available line at any given point in time.
In addition to available unused credit card lines, we enter into commitments to extend credit that are legally binding
conditional agreements having fixed expirations or termination dates and specified interest rates and purposes. These
commitments generally require customers to maintain certain credit standards. Collateral requirements and loan-to-
value ratios are the same as those for funded transactions and are established based on management’s credit
assessment of the customer. These commitments may expire without being drawn upon; therefore, the total
commitment amount does not necessarily represent future funding requirements. The outstanding unfunded
commitments to extend credit, other than credit card lines, were approximately $23.6 billion and $20.9 billion as of
December 31, 2014 and 2013, respectively.
Finance Charge and Fee Reserves
We continue to accrue finance charges and fees on credit card loans until the account is charged-off. Our methodology
for estimating the uncollectible portion of billed finance charges and fees is consistent with the methodology we
use to estimate the allowance for incurred principal losses on our credit card loan receivables. Revenue was reduced
by $645 million, $796 million and $937 million in 2014, 2013 and 2012, respectively, for the estimated uncollectible
portion of billed finance charges and fees. The finance charge and fee reserve, which is recorded as a contra asset
on our consolidated balance sheets, totaled $216 million as of December 31, 2014, compared to $190 million as of
December 31, 2013.
Loans Held for Sale
We also originated $5.4 billion, $2.1 billion and $1.6 billion of conforming residential mortgage loans and
commercial multifamily real estate loans in 2014, 2013 and 2012, respectively. We retained servicing on 96% of
these loans sold in 2014, and we retained servicing on 92% of these loans sold in both 2013 and 2012.
CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital One Financial Corporation (COF)