Huntington National Bank 2011 Annual Report Download - page 68

resulted in accelerated recognition of residential mortgage charge-offs totaling $6.8 million in 2011. Further, also
in 2011, we implemented a policy change regarding the placement of loans on nonaccrual status in both the home
equity and residential mortgage portfolios. This policy change resulted in accelerated placement of loans on
nonaccrual status totaling $6.7 million in the home equity portfolio and $8.0 million in the residential mortgage
portfolio.
Table 13 — Selected Home Equity and Residential Mortgage Portfolio Data
Home Equity
Residential
Mortgage
Secured
by
first-lien
Secured
by
second-lien
(dollar amounts in millions) 12/31/11 12/31/10 12/31/11 12/31/10 12/31/11 12/31/10
Ending balance ................................ $3,815 $3,055 $4,400 $4,658 $5,228 $4,500
Portfolio weighted average LTV ratio(1) ............ 71% 70% 81% 80% 77% 77%
Portfolio weighted average FICO score(2) ........... 749 745 734 733 731 721
Home Equity
Residential
Mortgage(3)
Secured
by
first-lien
Secured
by
second-lien
Year Ended December 31,
2011 2010 2011 2010 2011 2010
Originations ...................................... $1,900 $1,310 $799 $754 $1,508 $1,607
Origination weighted average LTV ratio(1) .............. 71% 69% 82% 79% 82% 81%
Origination weighted average FICO score(2) ............. 769 767 762 756 759 759
(1) The LTV ratios for home equity loans and home equity lines-of-credit are cumulative and reflect the balance
of any senior loans. LTV ratios reflect collateral values at the time of loan origination.
(2) Portfolio weighted average FICO scores reflect currently updated customer credit scores whereas
origination weighted average FICO scores reflect the customer credit scores at the time of loan origination.
(3) Represents only owned-portfolio originations.
Home Equity Portfolio
Our home equity portfolio (loans and lines-of-credit) consists of both first-lien and second-lien mortgage
loans with underwriting criteria based on minimum credit scores, debt-to-income ratios, and LTV ratios. We
offer closed-end home equity loans which are generally fixed-rate with principal and interest payments, and
variable-rate interest-only home equity lines-of-credit which do not require payment of principal during the
10-year revolving period of the line-of-credit. Applications are underwritten centrally in conjunction with an
automated underwriting system.
At December 31, 2011, 46% of our home equity portfolio was secured by first-lien mortgages. The credit
risk profile is substantially reduced when we hold a first-lien position. During 2011, 70% of our home equity
portfolio originations were secured by a first-mortgage lien. We focus on high quality borrowers primarily
located within our footprint. The majority of our home equity line-of-credit borrowers consistently pay more than
the minimum payment required in any given month. Additionally, since we focus on developing complete
relationships with our customers, many of our home equity borrowers are utilizing our other products and
services. The combination of high quality borrowers as measured by financial condition, FICO score, and the lien
position status provide a high degree of confidence regarding the performance of the 2009-2011 originations.
Within the home equity line-of-credit portfolio, the standard product is a 10-year interest-only draw period
with a balloon payment and represented a majority of the line-of-credit portfolio at December 31, 2011. As
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