Ally Bank 2012 Annual Report Download - page 63

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The following table shows the percentage of total consumer finance receivables and loans recorded at historical cost reported at carrying
value before allowance for loan losses by state and foreign concentration. Total automobile loans were $53.7 billion and $63.5 billion at
December 31, 2012, and December 31, 2011, respectively. Total mortgage and home equity loans were $9.8 billion and $10.0 billion at
December 31, 2012, and December 31, 2011, respectively.
2012 (a) 2011
December 31, Automobile
1st Mortgage
and home
equity Automobile
1st Mortgage
and home
equity
Texas 12.9% 5.8% 9.5% 5.5%
California 5.6 29.2 4.6 25.7
Florida 6.7 3.6 4.8 4.0
Michigan 5.0 4.1 4.0 4.8
Pennsylvania 5.2 1.6 3.6 1.6
Illinois 4.3 4.8 3.1 5.0
New York 4.6 2.0 3.5 2.3
Ohio 4.0 0.8 2.9 1.0
Georgia 3.7 1.9 2.5 1.8
North Carolina 3.3 2.0 2.2 2.1
Other United States 44.7 44.2 32.9 45.9
Foreign (b) — — 26.4 0.3
Total consumer loans 100.0% 100.0% 100.0% 100.0%
(a) Presentation is in descending order as a percentage of total consumer finance receivables and loans at December 31, 2012.
(b) Foreign consumer finance receivables and loans as of December 31, 2012, was $2 million. These remaining foreign balances are within Finland and the
Czech Republic.
We monitor our consumer loan portfolio for concentration risk across the geographies in which we lend. The highest concentrations of
loans in the United States are in Texas and California, which represented an aggregate of 21.0% and 16.4% of our total outstanding consumer
finance receivables and loans at December 31, 2012, and December 31, 2011, respectively.
Concentrations in our Mortgage operations are closely monitored given the volatility of the housing markets. Our consumer mortgage
loan concentrations in California, Florida, and Michigan receive particular attention as the real estate value depreciation in these states has
been amongst the most severe.
Repossessed and Foreclosed Assets
We classify an asset as repossessed or foreclosed (included in other assets on the Consolidated Balance Sheet) when physical possession
of the collateral is taken. We dispose of the acquired collateral in a timely fashion in accordance with regulatory requirements. For more
information on repossessed and foreclosed assets, refer to Note 1 to the Consolidated Financial Statements.
Repossessed assets in our Automotive Finance operations at December 31, 2012, increased $6 million to $62 million from December 31,
2011. Foreclosed mortgage assets at December 31, 2012, decreased $71 million to $6 million from December 31, 2011, primarily due to the
deconsolidation of ResCap.
Higher-Risk Mortgage Loans
Since 2009, we primarily focused our origination efforts on prime conforming and government-insured residential mortgages in the
United States. However, we continued to hold mortgage loans originated in prior years that have features that expose us to potentially higher
credit risk including high original loan-to-value mortgage loans (prime or nonprime), payment-option adjustable-rate mortgage loans (prime
nonconforming), interest-only mortgage loans (classified as prime conforming or nonconforming for domestic production and prime
nonconforming or nonprime for international production), and below-market rate (teaser) mortgages (prime or nonprime).
In circumstances when a loan has features such that it falls into multiple categories, it is classified to a category only once based on the
following hierarchy: (1) high original loan-to-value (LTV) mortgage loans, (2) payment-option adjustable-rate mortgage loans, (3) interest-
only mortgage loans, and (4) below-market rate (teaser) mortgages. Given the continued stress within the housing market, we believe this
hierarchy provides the most relevant risk assessment of our nontraditional products.
• High loan-to-value mortgages — Defined as first-lien loans with original loan-to-value ratios equal to or in excess of 100% or
second-lien loans that when combined with the underlying first-lien mortgage loan result in an original loan-to-value ratio equal to
or in excess of 100%. We ceased originating these loans with the intent to retain during 2009.
Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K