JP Morgan Chase 2009 Annual Report Download - page 121

JPMorgan Chase & Co./2009 Annual Report 119
The following table presents the geographic distribution of certain residential real estate loans with current estimated combined loan-to-value
ratios (“LTVs”) in excess of 100% as of December 31, 2009 and 2008, excluding purchased credit-impaired loans acquired in the Washington
Mutual transaction. The estimated collateral values used to calculate the current estimated combined LTV ratios in the following table were
derived from a nationally recognized home price index measured at the MSAs level. Because home price indices can have wide variability and
such derived real estate values do not represent actual appraised loan-level collateral values, the resulting ratios are necessarily imprecise and
should therefore be viewed as estimates.
Geographic distribution of residential real estate loans with current estimated combined LTVs > 100%(a)
December 31, 2009
(in billions, except ratios)
Home equity –
junior lien(c)
Prime
mortgage(c)(d)
Subprime
mortgage(c) Total
% of
total loans
(e)
California $ 8.3 $ 9.4 $ 1.1 $ 18.8 50%
New York 2.3 1.3 0.3 3.9 17
Arizona 2.8 1.1 0.2 4.1 75
Florida 2.8 3.9 1.3 8.0 67
Michigan 1.3 0.9 0.2 2.4 67
All other 8.1 6.1 1.8 16.0 22
Total combined LTV >100% $ 25.6 $ 22.7 $ 4.9 $ 53.2 35%
As a percentage of total loans 35% 34% 39% 35%
Total portfolio average combined LTV at origination 74 74 79
Total portfolio average current estimated combined LTV(b) 97 93 101
December 31, 2008(f)
(in billions, except ratios)
Home equity –
junior lien(c)
Prime
mortgage(c)(d)
Subprime
mortgage(c) Total
% of
total loans
(e)
California $ 8.4 $ 7.9 $ 1.3 $ 17.6 40%
New York 1.8 0.6 0.3 2.7 11
Arizona 2.9 0.9 0.2 4.0 65
Florida 2.9 2.9 1.5 7.3 55
Michigan 1.3 0.6 0.3 2.2 56
All other 7.5 3.3 1.6 12.4 16
Total combined LTV >100% $ 24.8 $ 16.2 $ 5.2 $ 46.2 27%
As a percentage of total loans 29% 22% 34% 27%
Total portfolio average combined LTV at origination 75 72 79
Total portfolio average current estimated combined LTV(b) 91 83 91
(a) Home equity–junior lien, prime mortgage and subprime mortgage loans with current estimated combined LTVs greater than 80% up to and including 100% were
$17.9 billion, $17.6 billion and $3.5 billion, respectively, at December 31, 2009.
(b) The average current estimated combined LTV ratio reflects the outstanding balance at the balance sheet date, divided by the estimated current property value. Current
property values are estimated based on home valuation models utilizing nationally recognized home price index valuation estimates.
(c) Represents combined loan-to-value, which considers all available lien positions related to the property.
(d) Includes mortgage loans insured by the U.S. government agencies of $5.3 billion and $1.8 billion at December 31, 2009 and 2008, respectively.
(e) Represents total loans of the product types noted in this table by geographic location.
(f) December 2008 estimated collateral values for the heritage Washington Mutual portfolio have been changed to conform to values derived from the home price index used
for the JPMorgan Chase portfolio. Home price indices generally have different valuation methods and assumptions and therefore can yield a wide range of estimates.
Top 5 States Consumer Loans - Managed
(at December 31, 2008)
California
TexasTexas
New York
52.7%
17.9%
6.8%
Florida
11.0%
6.2%
5.4%
IllinoisIllinois
All other
(a)
(a) Excluding the purchased credit-impaired loans acquired in the Washington Mutual transaction.
California
TexasTexas
New York
53.1%
17.0%
7.0%
Florida
11.1%
6.1%
5.7%
IllinoisIllinois
All other
Top 5 States Consumer Loans - Managed
(at December 31, 2009)
(a)