The Hartford 2014 Annual Report Download - page 112

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In addition to CMBS bonds and CRE CDOs, the Company has exposure to commercial mortgage loans as presented in the following table. These loans are
collateralized by a variety of commercial properties and are diversified both geographically throughout the United States and by property type. These loans
are primarily in the form of whole loans, where the Company is the sole lender, or may include participations. Loan participations are loans where the
Company has purchased or retained a portion of an outstanding loan or package of loans and participates on a pro-rata basis in collecting interest and
principal pursuant to the terms of the participation agreement. In general, A-Note participations have senior payment priority, followed by B-Note
participations and then mezzanine loan participations. As of December 31, 2014, loans within the Company’s mortgage loan portfolio that have had
extensions or restructurings other than what is allowable under the original terms of the contract are immaterial.
Commercial Mortgage Loans
 


  

 
Agricultural $ 51 $ (5) $ 46 $ 132 $ (7) $ 125
Whole loans 5,333 (13) 5,320 5,223 (10) 5,213
A-Note participations 154 — 154 192 — 192
B-Note participations 17 — 17 99 (50) 49
Mezzanine loans 19 — 19 19 — 19
         
[1] Amortized cost represents carrying value prior to valuation allowances, if any.
The overall decrease in mortgage loans is attributed to an increase in loan payoffs in the agricultural loan and loan participations portfolios, partially offset
by loan originations in the whole loan portfolio. Since December 31, 2013, the Company funded $604 of commercial whole loans with a weighted average
loan-to-value (“LTV”) ratio of 61% and a weighted average yield of 4.0%. The Company continues to originate commercial whole loans within primary
markets, such as office, industrial and multi-family, focusing on loans with strong LTV ratios and high quality property collateral. Included in the table above
are mortgage loans held-for-sale with a carrying value and valuation allowance of $61 and $3, respectively, as of December 31, 2013. There were no
mortgage loans held for sale a of December 31, 2014.
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