MetLife 2007 Annual Report Download - page 125

Mortgage and Consumer Loans
Mortgage and consumer loans are categorized as follows:
Amount Percent Amount Percent
2007 2006
December 31,
(In millions)
Commercialmortgageloans...................................... $35,669 76% $32,000 75%
Agriculturalmortgageloans ...................................... 10,508 22 9,231 22
Consumerloans.............................................. 1,051 2 1,190 3
Total.................................................... 47,228 100% 42,421 100%
Less:Valuationallowances....................................... 198 182
Totalmortgageandconsumerloans ............................... $47,030 $42,239
Mortgage loans are collateralized by properties primarily located in the United States. At December 31, 2007, 21%, 7% and 7% of the
value of the Company’s mortgage and consumer loans were located in California, Florida and Texas, respectively. Generally, the Company,
as the lender, only loans up to 75% of the purchase price of the underlying real estate.
Certain of the Company’s real estate joint ventures have mortgage loans with the Company. The carrying values of such mortgages
were $373 million and $372 million at December 31, 2007 and 2006, respectively.
Information regarding loan valuation allowances for mortgage and consumer loans is as follows:
2007 2006 2005
Years Ended
December 31,
(In millions)
BalanceatJanuary1,...................................................... $182 $172 $157
Additions.............................................................. 77 36 64
Deductions............................................................. (61) (26) (49)
BalanceatDecember31, ................................................... $198 $182 $172
A portion of the Company’s mortgage and consumer loans was impaired and consisted of the following:
2007 2006
December 31,
(In millions)
Impairedloanswithvaluationallowances............................................... $624 $374
Impairedloanswithoutvaluationallowances............................................. 44 75
Subtotal.................................................................... 668 449
Less:Valuationallowancesonimpairedloans............................................ 73 21
Impairedloans................................................................ $595 $428
The average investment on impaired loans was $453 million, $202 million and $187 million for the years ended December 31, 2007,
2006 and 2005, respectively. Interest income on impaired loans was $38 million, $2 million and $12 million for the years ended
December 31, 2007, 2006 and 2005, respectively.
The investment in restructured loans was $2 million and $9 million at December 31, 2007 and 2006, respectively. Interest income of
less than $1 million, $1 million and $2 million was recognized on restructured loans for the years ended December 31, 2007, 2006 and
2005, respectively. Gross interest income that would have been recorded in accordance with the original terms of such loans amounted to
less than $1 million, $1 million and $3 million for the years ended December 31, 2007, 2006 and 2005, respectively.
Mortgage and consumer loans with scheduled payments of 90 days or more past due on which interest is still accruing, had an
amortized cost of $4 million and $15 million at December 31, 2007 and 2006, respectively. Mortgage and consumer loans on which
interest is no longer accrued had an amortized cost of $28 million and $36 million at December 31, 2007 and 2006, respectively. Mortgage
and consumer loans in foreclosure had an amortized cost of $12 million and $35 million at December 31, 2007 and 2006, respectively.
F-29MetLife, Inc.
MetLife, Inc.
Notes to Consolidated Financial Statements — (Continued)