Citibank 2014 Annual Report Download - page 219

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Consumer Credit Scores (FICO)
In the U.S., independent credit agencies rate an individual’s risk for
assuming debt based on the individual’s credit history and assign every
consumer a “FICO” (Fair Isaac Corporation) credit score. These scores
are continually updated by the agencies based upon an individual’s credit
actions (e.g., taking out a loan or missed or late payments).
The following tables provide details on the FICO scores attributable
to Citi’s U.S. consumer loan portfolio as of December 31, 2014 and 2013
(commercial market loans are not included in the table since they are
business-based and FICO scores are not a primary driver in their credit
evaluation). FICO scores are updated monthly for substantially all of the
portfolio or, otherwise, on a quarterly basis, for the remaining portfolio.
FICO score distribution in U.S. portfolio (1)(2) December 31, 2014
In millions of dollars
Less than
620 ≥ 620 but less than 660
Equal to or
greater
than 660
Residential first mortgages $ 8,911 $ 5,463 $ 45,783
Home equity loans 3,257 2,456 20,957
Credit cards 7,647 10,296 92,877
Installment and other 4,015 2,520 5,150
Total $23,830 $20,735 $164,767
(1) Excludes loans guaranteed by U.S. government entities, loans subject to long-term standby
commitments (LTSCs) with U.S. government-sponsored entities and loans recorded at fair value.
(2) Excludes balances where FICO was not available. Such amounts are not material.
FICO score distribution in U.S. portfolio (1)(2) December 31, 2013
In millions of dollars
Less than
620 ≥ 620 but less than 660
Equal to or
greater
than 660
Residential first mortgages $11,860 $ 6,426 $ 46,207
Home equity loans 4,093 2,779 23,152
Credit cards 8,125 10,693 94,437
Installment and other 3,900 2,399 5,186
Total $27,978 $22,297 $168,982
(1) Excludes loans guaranteed by U.S. government entities, loans subject to LTSCs with U.S.
government-sponsored entities and loans recorded at fair value.
(2) Excludes balances where FICO was not available. Such amounts are not material.
Loan to Value (LTV) Ratios
LTV ratios (loan balance divided by appraised value) are calculated at
origination and updated by applying market price data.
The following tables provide details on the LTV ratios attributable to Citi’s
U.S. consumer mortgage portfolios as of December 31, 2014 and 2013. LTV
ratios are updated monthly using the most recent Core Logic Home Price
Index data available for substantially all of the portfolio applied at the
Metropolitan Statistical Area level, if available, or the state level if not. The
remainder of the portfolio is updated in a similar manner using the Federal
Housing Finance Agency indices.
LTV distribution in U.S. portfolio (1)(2) December 31, 2014
In millions of dollars
Less than or
equal to 80%
> 80% but less
than or equal to
100%
Greater
than
100%
Residential first mortgages $48,163 $ 9,480 $ 2,670
Home equity loans 14,638 7,267 4,641
Total $62,801 $16,747 $ 7,311
(1) Excludes loans guaranteed by U.S. government entities, loans subject to LTSCs with U.S.
government-sponsored entities and loans recorded at fair value.
(2) Excludes balances where LTV was not available. Such amounts are not material.
LTV distribution in U.S. portfolio (1)(2) December 31, 2013
In millions of dollars
Less than or
equal to 80%
> 80% but less
than or equal to
100%
Greater
than
100%
Residential first mortgages $45,809 $13,458 $ 5,269
Home equity loans 14,216 8,685 6,935
Total $60,025 $22,143 $12,204
(1) Excludes loans guaranteed by U.S. government entities, loans subject to LTSCs with U.S. government-
sponsored entities and loans recorded at fair value.
(2) Excludes balances where LTV was not available. Such amounts are not material.
Impaired Consumer Loans
Impaired loans are those loans where Citigroup believes it is probable all
amounts due according to the original contractual terms of the loan will
not be collected. Impaired consumer loans include non-accrual commercial
market loans, as well as smaller-balance homogeneous loans whose terms
have been modified due to the borrower’s financial difficulties and where
Citigroup has granted a concession to the borrower. These modifications
may include interest rate reductions and/or principal forgiveness. Impaired
consumer loans exclude smaller-balance homogeneous loans that have not
been modified and are carried on a non-accrual basis. In addition, impaired
consumer loans exclude substantially all loans modified pursuant to Citi’s
short-term modification programs (i.e., for periods of 12 months or less) that
were modified prior to January 1, 2011.