Wells Fargo 2011 Annual Report Download - page 56

Risk Management — Credit Risk Management (continued)
were PCI loans from Wachovia) at December 31, 2011, mostly
within the larger metropolitan areas, with no single California
metropolitan area consisting of more than 3% of total loans. We
continuously monitor changes in real estate values and
underlying economic or market conditions for all geographic
areas of our real estate 1-4 family mortgage portfolio as part of
our credit risk management process.
Part of our credit monitoring includes tracking delinquency,
FICO scores and collateral values (LTV/CLTV) on the entire real
estate 1-4 family mortgage loan portfolio. These metrics
experienced improvement throughout 2011, on the non-PCI
mortgage portfolio, with the majority of the improvement
occurring in the first half of 2011. Loans 30 days or more
delinquent at December 31, 2011, totaled $18.4 billion, or 6%, of
total non-PCI mortgages, compared with $20.3 billion, or 7%, at
December 31, 2010. Loans with FICO scores lower than 640
totaled $44.1 billion at December 31, 2011, or 15% of all non-PCI
mortgages, compared with $50.7 billion, or 17%, at
December 31, 2010. Mortgages with a LTV/CLTV greater than
100% totaled $74.2 billion at December 31, 2011, or 26% of total
non-PCI mortgages, compared with $84.9 billion, or 29%, at
December 31, 2010. Information regarding credit risk trends can
be found in Note 6 (Loans and Allowance for Credit Losses) to
Financial Statements in this Report.
Table 23: Real Estate 1-4 Family Mortgage Loans by State
December 31, 2011
Real estate
Real estate
Total real
1-4 family
1-4 family
estate 1-4
% of
first
junior lien
family
total
(in millions)
mortgage
mortgage
mortgage
loans
PCI loans:
California
$
19,336
42
19,378
3
%
Florida
2,700
38
2,738
*
New Jersey
1,285
25
1,310
*
Other (1)
6,425
101
6,526
*
Total PCI loans
$
29,746
206
29,952
4
%
All other loans:
California
$
54,312
23,934
78,246
10
%
Florida
16,001
7,664
23,665
3
New Jersey
9,007
6,240
15,247
2
New York
9,045
3,597
12,642
2
Virginia
5,874
4,431
10,305
1
Pennsylvania
5,978
3,929
9,907
1
North Carolina
5,642
3,582
9,224
1
Georgia
4,583
3,369
7,952
1
Texas
6,444
1,335
7,779
1
Other (2)
55,707
27,704
83,411
12
Government insured/
guaranteed loans (3)
26,555
-
26,555
3
Total all
other loans
$
199,148
85,785
284,933
37
%
Total
$
228,894
85,991
314,885
41
%
* Less than 1%.
(1) Consists of 45 states; no state had loans in excess of $729 million.
(2) Consists of 41 states; no state had loans in excess of $6.6 billion.
(3) Represents loans whose repayments are insured by the FHA or guaranteed by
the VA. In 2011, we consolidated $5.6 billion of previously sold FHA insured real
estate 1-4 family reverse mortgages.
PICK-A-PAY PORTFOLIO The Pick-a-Pay portfolio was one of the
consumer residential first mortgage portfolios we acquired from
Wachovia and a majority of the portfolio was identified as PCI
loans. The Pick-a-Pay portfolio is a liquidating portfolio, as
Wachovia ceased originating new Pick-a-Pay loans in 2008.
The Pick-a-Pay portfolio includes loans that offer payment
options (Pick-a-Pay option payment loans), and also includes
loans that were originated without the option payment feature,
loans that no longer offer the option feature as a result of our
modification efforts since the acquisition, and loans where the
customer voluntarily converted to a fixed-rate product. The Pick-
a-Pay portfolio is included in the consumer real estate 1-4 family
first mortgage class of loans throughout this Report. Real estate
1-4 family junior lien mortgages and lines of credit associated
with Pick-a-Pay loans are reported in the home equity portfolio.
Table 24 provides balances over time related to the types of
loans included in the portfolio since acquisition.
54