Wells Fargo 2012 Annual Report Download - page 159

Real estate Real estate Other
1-4 family 1-4 family revolving
first junior lien Credit credit and
(in millions) mortgage mortgage card installment Total
December 31, 2012
By updated FICO:
< 600 $ 17,662 6,122 2,314 9,091 35,189
600-639 10,208 3,660 1,961 6,403 22,232
640-679 15,764 6,574 3,772 10,153 36,263
680-719 24,725 11,361 4,990 11,640 52,716
720-759 31,502 15,992 5,114 10,729 63,337
760-799 63,946 21,874 4,109 12,371 102,300
800+ 26,044 8,526 2,223 6,355 43,148
No FICO available 3,491 1,204 157 3,780 8,632
FICO not required - - - 5,403 5,403
Government insured/guaranteed loans (1) 29,719 - - 12,446 42,165
Total consumer loans (excluding PCI) 223,061 75,313 24,640 88,371 411,385
Total consumer PCI loans (carrying value) 26,839 152 - - 26,991
Total consumer loans $ 249,900 75,465 24,640 88,371 438,376
December 31, 2011
By updated FICO:
< 600 $ 21,604 7,428 2,323 8,921 40,276
600-639 10,978 4,086 1,787 6,222 23,073
640-679 15,563 7,187 3,383 9,350 35,483
680-719 23,622 12,497 4,697 10,465 51,281
720-759 27,417 17,574 4,760 9,936 59,687
760-799 47,337 24,979 3,517 11,163 86,996
800+ 21,381 10,247 1,969 5,674 39,271
No FICO available 4,691 1,787 400 4,393 11,271
FICO not required - - - 4,990 4,990
Government insured/guaranteed loans (1) 26,555 - - 15,346 41,901
Total consumer loans (excluding PCI) 199,148 85,785 22,836 86,460 394,229
Total consumer PCI loans (carrying value) 29,746 206 - - 29,952
Total consumer loans $ 228,894 85,991 22,836 86,460 424,181
(1) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA and student loans whose repayments are predominantly guaranteed by
agencies on behalf of the U.S. Department of Education under FFELP.
LTV refers to the ratio comparing the loan’s unpaid principal
balance to the property’s collateral value. CLTV refers to the
combination of first mortgage and junior lien mortgage
(including unused line amounts for credit line products) ratios.
LTVs and CLTVs are updated quarterly using a cascade approach
which first uses values provided by automated valuation models
(AVMs) for the property. If an AVM is not available, then the
value is estimated using the original appraised value adjusted by
the change in Home Price Index (HPI) for the property location.
If an HPI is not available, the original appraised value is used.
The HPI value is normally the only method considered for high
value properties, generally with an original value of $1 million or
more, as the AVM values have proven less accurate for these
properties.
The following table shows the most updated LTV and CLTV
distribution of the real estate 1-4 family first and junior lien
mortgage loan portfolios. In recent years, the residential real
estate markets experienced significant declines in property
values and several markets, particularly California and Florida
have experienced more significant declines than the national
decline. These trends are considered in the way that we monitor
credit risk and establish our allowance for credit losses. LTV
does not necessarily reflect the likelihood of performance of a
given loan, but does provide an indication of collateral value. In
the event of a default, any loss should be limited to the portion of
the loan amount in excess of the net realizable value of the
underlying real estate collateral value. Certain loans do not have
an LTV or CLTV primarily due to industry data availability and
portfolios acquired from or serviced by other institutions.
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