Ally Bank 2012 Annual Report Download - page 149

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The following tables represent on-balance sheet loans held-for-sale and finance receivable and loans, off-balance sheet securitizations,
and whole-loan sales where we have continuing involvement. The table presents quantitative information about delinquencies and net credit
losses. Refer to Note 11 for further detail on total serviced assets.
Total Amount Amount 60 days or more
past due Net credit losses
December 31, ($ in millions) 2012 2011 2012 2011 2012 2011
On-balance sheet loans
Consumer automobile $ 53,715 $ 63,884 $ 351 $ 341 $ 369 $ 321
Consumer mortgage (a) 12,311 18,940 241 3,242 16 181
Commercial automobile 32,822 37,302 24 162 (1) 13
Commercial mortgage —1,925 —14 (1) 31
Commercial other 2,783 1,261 11(31) (5)
Total on-balance sheet loans 101,631 123,312 617 3,760 352 541
Off-balance sheet securitization entities
Consumer automobile 1,495 —4—2—
Consumer mortgage - GSEs (b) 119,384 262,984 1,892 9,456 n/m n/m
Consumer mortgage-private-label —63,991 —11,301 1,234 3,982
Total off-balance sheet securitization entities 120,879 326,975 1,896 20,757 1,236 3,982
Whole-loan transactions (c) 6,756 33,961 129 2,901 243 782
Total $ 229,266 $ 484,248 $ 2,642 $ 27,418 $ 1,831 $ 5,305
(a) Includes loans subject to conditional repurchase options of $0 billion and $2.3 billion guaranteed by the GSEs, and $0 million and $132 million sold to
certain private-label mortgage securitization entities at December 31, 2012, and 2011, respectively.
(b) Anticipated credit losses are not meaningful due to the GSE guarantees.
(c) Whole-loan transactions are not part of a securitization transaction, but represent consumer automobile and consumer mortgage pools of loans sold to
third-party investors.
11. Servicing Activities
Mortgage Servicing Rights
The following table summarizes activity related to MSRs, which are carried at fair value. As there are limited MSR market transactions
that are directly observable, management estimates fair value using internally developed discounted cash flow models (an income approach)
to estimate the fair value. These internal valuation models estimate net cash flows based on internal operating assumptions that we believe
would be used by market participants in orderly transactions combined with market-based assumptions for loan prepayment rates, interest
rates, and discount rates that we believe approximate yields required by investors in this asset.
Year ended December 31, ($ in millions) 2012 (a) 2011
Estimated fair value at January 1, $ 2,519 $ 3,738
Additions recognized on sale of mortgage loans 240 622
Additions from purchases of servicing rights —31
Subtractions from sales of servicing assets — (266)
Changes in fair value
Due to changes in valuation inputs or assumptions used in the valuation model (282) (1,041)
Other changes in fair value (395) (565)
Deconsolidation of ResCap (1,130) —
Estimated fair value at December 31, $ 952 $ 2,519
(a) The remaining balance is at Ally Bank, due to the deconsolidation of ResCap. Ally Bank announced that it has begun to explore strategic alternatives for
its agency MSR portfolio.
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model include all changes due to a
revaluation by a model or by a benchmarking exercise. Other changes in fair value primarily include the accretion of the present value of the
discount related to forecasted cash flows and the economic runoff of the portfolio.
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K