Wells Fargo 2006 Annual Report Download - page 106

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104
(in millions) December 31, Year ended December 31,
Total loans(1) Delinquent loans(2) Net charge-offs (recoveries)
2006 2005 2006 2005 2006 2005
Commercial and commercial real estate:
Commercial $ 70,779 $ 61,552 $ 346 $ 304 $ 303 $ 273
Other real estate mortgage 44,834 45,042 178 344 (33) 11
Real estate construction 15,935 13,406 81 40 (1) (7)
Lease financing 5,614 5,400 29 45 914
Total commercial and commercial real estate 137,162 125,400 634 733 278 291
Consumer:
Real estate 1- 4 family first mortgage 114,676 136,261 929 709 77 90
Real estate 1- 4 family junior lien mortgage 68,926 59,143 275 194 118 105
Credit card 14,697 12,009 262 159 409 467
Other revolving credit and installment 54,036 48,287 804 470 1,148 1,115
Total consumer 252,335 255,700 2,270 1,532 1,752 1,777
Foreign 6,983 5,930 94 71 210 239
Total loans owned and securitized 396,480 387,030 $2,998 $2,336 $2,240 $2,307
Less:
Securitized loans 43,546 35,047
Mortgages held for sale 33,097 40,534
Loans held for sale 721 612
Total loans held $319,116 $310,837
(1) Represents loans in the balance sheet or that have been securitized, but excludes securitized loans that we continue to service but as to which we have no other
continuing involvement.
(2) Includes nonaccrual loans and loans 90 days or more past due and still accruing.
This table presents information about the principal balances of owned and securitized loans.
We are a variable interest holder in certain special-purpose
entities that are consolidated because we absorb a majority
of each entity’s expected losses, receive a majority of each
entity’s expected returns or both. We do not hold a majority
voting interest in these entities. Our consolidated variable
interest entities (VIEs), substantially all of which were formed
to invest in securities and to securitize real estate investment
trust securities, had approximately $3.4 billion and $2.5 billion
in total assets at December 31, 2006 and 2005, respectively.
The primary activities of these entities consist of acquiring
and disposing of, and investing and reinvesting in securities,
and issuing beneficial interests secured by those securities to
investors. The creditors of a majority of these consolidated
entities have no recourse against us.
We also hold variable interests greater than 20% but
less than 50% in certain special-purpose entities formed
to provide affordable housing and to securitize corporate
debt that had approximately $2.9 billion in total assets at
both December 31, 2006 and 2005. We are not required to
consolidate these entities. Our maximum exposure to loss
as a result of our involvement with these unconsolidated
variable interest entities was approximately $980 million
and $870 million at December 31, 2006 and 2005, respectively,
predominantly representing investments in entities formed to
invest in affordable housing. However, we expect to recover
our investment over time, primarily through realization of
federal low-income housing tax credits.