eTrade 2012 Annual Report Download - page 139

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the draw period, which ranges from five to ten years. At December 31, 2012, the vast majority of the home
equity line of credit portfolio had not converted from the interest-only draw period to an amortizing loan. In
addition, approximately 80% of the home equity line of credit portfolio will not begin amortizing until after
2014. The following table outlines when home equity lines of credit convert to amortizing for the home equity
line of credit portfolio as of December 31, 2012:
Period of Conversion to Amortizing Loan
% of Home Equity Line of Credit
Portfolio
Already amortizing 9%
Year ending December 31, 2013 4%
Year ending December 31, 2014 7%
Year ending December 31, 2015 26%
Year ending December 31, 2016 41%
Year ending December 31, 2017 13%
The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality
indicator at December 31, 2012 and 2011 (dollars in thousands):
One- to Four-Family Home Equity
December 31, December 31,
Current LTV/CLTV (1) 2012 2011 2012 2011
<=80% $1,324,167 $1,596,299 $ 927,559 $1,168,851
80%-100% 1,404,415 1,716,799 776,199 967,945
100%-120% 1,231,448 1,527,266 932,033 1,191,862
>120% 1,482,144 1,775,444 1,587,670 1,999,999
Total mortgage loans receivable $5,442,174 $6,615,808 $4,223,461 $5,328,657
Average estimated current LTV/CLTV (2) 108.1% 106.7% 113.8% 112.1%
Average LTV/CLTV at loan origination (3) 71.2% 71.0% 79.4% 79.2%
(1) Current CLTV calculations for home equity loans are based on the maximum available line for home equity lines of credit and
outstanding principal balance for home equity installment loans. Current property values are updated on a quarterly basis using the most
recent property value data available to the Company. For properties in which the Company did not have an updated valuation, it utilized
home price indices to estimate the current property value.
(2) The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available
line for home equity lines of credit, divided by the estimated current value of the underlying property.
(3) Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased
loans and undrawn balances for home equity loans.
One- to Four-Family Home Equity
December 31, December 31,
Documentation Type 2012 2011 2012 2011
Full documentation $2,317,933 $2,845,571 $2,166,554 $2,699,164
Low/no documentation 3,124,241 3,770,237 2,056,907 2,629,493
Total mortgage loans receivable $5,442,174 $6,615,808 $4,223,461 $5,328,657
136