Capital One 2014 Annual Report Download - page 275

The subsidiaries had open repurchase requests relating to approximately $2.5 billion original principal balance of
mortgage loans as of December 31, 2014, compared to $2.8 billion as of December 31, 2013. Currently, repurchase
demands predominantly relate to the 2006 and 2007 vintages. We have received relatively few repurchase demands
from the 2008 and 2009 vintages, mostly because GreenPoint ceased originating mortgages in August 2007.
The following table presents information on pending repurchase requests by counterparty category and timing of
initial repurchase request. The amounts presented are based on original loan principal balances.
Table 20.2: Open Pipeline All Vintages (all entities)(1)
Uninsured
Insured Securitizations
(Dollars in millions)(All amounts are Original Principal Balance) GSEs Securitizations and Other Total
Open claims as of December 31, 2012 . . . . . . . . . . . . . . . . . $ 59 $ 1,579 $ 781 $ 2,419
Gross new demands received . . . . . . . . . . . . . . . . . . . . . . . . 203 40 391 634
Loans repurchased/made whole . . . . . . . . . . . . . . . . . . . . . . (49) (5) (27) (81)
Demands rescinded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (124) 0 (23) (147)
Open claims as of December 31, 2013 . . . . . . . . . . . . . . . . . $ 89 $ 1,614 $ 1,122 $ 2,825
Gross new demands received . . . . . . . . . . . . . . . . . . . . . . . . 22 0 742 764
Loans repurchased/made whole . . . . . . . . . . . . . . . . . . . . . . (31) 0 (5) (36)
Demands rescinded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64) (965) (12) (1,041)
Open claims as of December 31, 2014 . . . . . . . . . . . . . . . . . $ 16 $ 649 $ 1,847 $ 2,512
(1) The open pipeline includes all repurchase requests ever received by our subsidiaries where either the requesting party has not formally
rescinded the repurchase request and where our subsidiary has not agreed to either repurchase the loan at issue or make the requesting
party whole with respect to its losses. Accordingly, repurchase requests denied by our subsidiaries and not pursued by the counterparty
remain in the open pipeline, with the exception of certain aged repurchase requests submitted by parties without contractual standing to
pursue such requests, which may be removed from the pipeline. Finally, the amounts reflected in this chart are the original principal
balance amounts of the mortgage loans at issue and do not correspond to the losses our subsidiary would incur upon the repurchase of
these loans.
The following table summarizes changes in our representation and warranty reserve for the years ended December 31,
2014 and 2013:
Table 20.3: Changes in Representation and Warranty Reserve(1)
Year Ended
December 31,
(Dollars in millions) 2014 2013
Representation and warranty reserve, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,172 $ 899
(Benefit) provision for mortgage representation and warranty losses:
Recorded in continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) (24)
Recorded in discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) 333
Total (benefit) provision for mortgage representation and warranty losses . . . . . . . . . . . . . . . (33) 309
Net realized losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (408) (36)
Representation and warranty reserve, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 731 $ 1,172
(1) Reported on our consolidated balance sheets as a component of other liabilities.
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CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital One Financial Corporation (COF)