PNC Bank 2011 Annual Report Download - page 131

The following table provides information related to certain financial information associated with PNC’s loan sale and servicing
activities:
Certain Financial Information and Cash Flows Associated with Loan Sale and Servicing Activities
In millions
Residential
Mortgages
Commercial
Mortgages (a)
Home Equity
Loans/
Lines (b)
FINANCIAL INFORMATION – December 31, 2011
Servicing portfolio (c) $118,058 $155,813 $5,661
Carrying value of servicing assets (d) 647 468 1
Servicing advances (e) 563 510 8
Servicing deposits (f) 2,264 3,861 38
Repurchase and recourse obligations (g) 83 47 47
Carrying value of mortgage-backed securities held (h) 4,654 1,839
FINANCIAL INFORMATION – December 31, 2010
Servicing portfolio (c) $125,806 $162,514 $6,041
Carrying value of servicing assets (d) 1,033 665 2
Servicing advances (e) 533 415 21
Servicing deposits (f) 2,661 3,537 61
Repurchase and recourse obligations (g) 144 54 150
Carrying value of mortgage-backed securities held (h) 2,171 1,875
The following table provides information related to the cash flows associated with PNC’s loan sale and servicing activities:
In millions
Residential
Mortgages
Commercial
Mortgages (a)
Home Equity
Loans/
Lines (b)
CASH FLOWS – Year ended December 31, 2011
Sales of loans (i) $11,920 $2,351
Repurchases of previously transferred loans (j) 1,683 $42
Contractual servicing fees received 355 179 22
Servicing advances recovered/(funded), net (30) (95) 12
Cash flows on mortgage-backed securities held (h) 586 419
CASH FLOWS – Year ended December 31, 2010
Sales of loans (i) $ 9,951 $2,413
Repurchases of previously transferred loans (j) 2,283 $28
Contractual servicing fees received 413 224 26
Servicing advances recovered/(funded), net 66 (32) 2
Cash flows on mortgage-backed securities held (h) 588 510
(a) Represents financial and cash flow information associated with both commercial mortgage loan transfer and servicing activities.
(b) These activities were part of an acquired brokered home equity business in which PNC is no longer engaged. See Note 23 Commitments and Guarantees for further information.
(c) For our continuing involvement with residential mortgages and home equity loan/line transfers, amount represents outstanding balance of loans transferred and serviced. For
commercial mortgages, amount represents the portion of the overall servicing portfolio in which loans have been transferred by us or third parties to VIEs.
(d) See Note 8 Fair Value and Note 9 Goodwill and Other Intangible Assets for further information.
(e) Pursuant to certain contractual servicing agreements, represents outstanding balance of funds advanced (i) to investors for monthly collections of borrower principal and interest,
(ii) for borrower draws on unused home equity lines of credit, and (iii) for collateral protection associated with the underlying mortgage collateral.
(f) Represents balances in custodial and escrow demand deposit accounts held at PNC on behalf of investors. Borrower’s loan payments including escrows are deposited in these accounts
prior to their distribution.
(g) Represents liability for our loss exposure associated with loan repurchases for breaches of representations and warranties for our Residential Mortgage Banking and Non-Strategic
Assets Portfolio segments, and our multi-family commercial mortgage loss share arrangements for our Corporate & Institutional Banking segment. See Note 23 Commitments and
Guarantees for further information.
(h) Represents securities held where PNC transferred to and/or services loans for a securitization SPE and we hold securities issued by that SPE.
(i) There were no gains or losses recognized on the transaction date for sales of residential mortgage and certain commercial mortgage loans as these loans are recognized on the balance
sheet at fair value. For transfers of commercial mortgage loans not recognized on the balance sheet at fair value, gains/losses recognized on sales of these loans were insignificant for
the periods presented.
(j) Includes repurchases of government insured and government guaranteed loans repurchased through the exercise of our ROAP option.
122 The PNC Financial Services Group, Inc. – Form 10-K