Capital One 2014 Annual Report Download - page 210

188
December 31, 2013
Consolidated Unconsolidated
Carrying Carrying Carrying Carrying Maximum
Amount Amount of Amount Amount of Exposure to
(Dollars in millions) of Assets Liabilities of Assets Liabilities Loss
Securitization-related VIEs:
Credit card loan securitizations(2) . . . . . . . . . . . . . . . . $40,422 $ 12,671 $ 0 $ 0 $ 0
Home loan securitizations(3) . . . . . . . . . . . . . . . . . . . . 0 0 199 15 702
Total securitization-related VIEs . . . . . . . . . . . . . . . . . . 40,422 12,671 199 15 702
Other VIEs:
Affordable housing entities . . . . . . . . . . . . . . . . . . . . . 0 0 2,969 463 2,969
Entities that provide capital to low-income
and rural communities . . . . . . . . . . . . . . . . . . . . . . . 389 98 1 0 1
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 95 0 95
Total other VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390 99 3,065 463 3,065
Total VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,812 $ 12,770 $ 3,264 $ 478 $ 3,767
(1) As of January 1, 2014, we adopted the proportional amortization method of accounting for Investments in Qualified Affordable Housing
Projects. See “Note 1—Summary of Significant Accounting Policies” for additional information. Prior periods have been recast to conform
to this presentation.
(2) Represents the gross amount of assets and liabilities owned by the VIE, which includes seller’s interest and retained and repurchased notes
held by other related parties.
(3) The carrying amount of assets of unconsolidated securitization-related VIEs consists of retained interests associated with the securitization
of option-adjustable rate mortgage loans (“option-ARM”) and letters of credit related to manufactured housing securitizations. These are
reported on our consolidated balance sheets under other assets. The carrying amount of liabilities of unconsolidated securitization-related
VIEs is comprised of obligations on certain swap agreements associated with the securitization of manufactured housing loans and other
obligations. These are reported on our consolidated balance sheets under other liabilities.
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 mortgage
representation and warranty exposure.
CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital One Financial Corporation (COF)