MetLife 2011 Annual Report Download - page 135

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
The following tables present the recorded investment in mortgage loans held for investment, by portfolio segment, by method of evaluation of credit
loss, and the related valuation allowances, by type of credit loss, at:
Commercial Agricultural Residential Total
(In millions)
December 31, 2011:
Mortgage loans:
Evaluated individually for credit losses ............................. $ 96 $ 159 $ 13 $ 268
Evaluated collectively for credit losses ............................. 40,344 12,970 676 53,990
Total mortgage loans ........................................ 40,440 13,129 689 54,258
Valuation allowances:
Specific credit losses .......................................... 59 45 1 105
Non-specifically identified credit losses ............................ 339 36 1 376
Total valuation allowances .................................... 398 81 2 481
Mortgage loans, net of valuation allowance ....................... $40,042 $13,048 $ 687 $53,777
December 31, 2010:
Mortgage loans:
Evaluated individually for credit losses ............................. $ 120 $ 146 $ 13 $ 279
Evaluated collectively for credit losses ............................. 37,698 12,605 2,218 52,521
Total mortgage loans ........................................ 37,818 12,751 2,231 52,800
Valuation allowances:
Specific credit losses .......................................... 36 52 — 88
Non-specifically identified credit losses ............................ 526 36 14 576
Total valuation allowances .................................... 562 88 14 664
Mortgage loans, net of valuation allowance ....................... $37,256 $12,663 $2,217 $52,136
The following tables present the changes in the valuation allowance, by portfolio segment:
Mortgage Loan Valuation Allowances
Commercial Agricultural Residential Total
(In millions)
Balance at January 1, 2009 ......................................... $232 $ 61 $11 $304
Provision (release) ................................................. 384 79 12 475
Charge-offs, net of recoveries ....................................... (27) (25) (6) (58)
Balance at December 31, 2009 ...................................... 589 115 17 721
Provision (release) ................................................. (5) 12 2 9
Charge-offs, net of recoveries ....................................... (22) (39) (5) (66)
Balance at December 31, 2010 ...................................... 562 88 14 664
Provision (release) ................................................. (152) (3) 10 (145)
Charge-offs, net of recoveries ....................................... (12) (4) (3) (19)
Transfer to held-for-sale(1) .......................................... — — (19) (19)
Balance at December 31, 2011 ...................................... $398 $ 81 $ 2 $481
(1) The valuation allowance on and the related carrying value of certain residential mortgage loans held-for-investment was transferred to mortgage
loans held-for-sale in connection with the pending disposition of certain operations of MetLife Bank. See Note 2.
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