Charles Schwab 2015 Annual Report Download - page 93

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THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Financial Statements
(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)
- 73 -
In addition to monitoring delinquency, the Company monitors the credit quality of First Mortgages and HELOCs by
stratifying the portfolios by the year of origination, borrower FICO scores at origination, updated borrower FICO scores,
LTV ratios at origination, and estimated current LTV ratios. Borrowers’ FICO scores are provided by an independent third
party credit reporting service and were last updated in December 2015. The Origination LTV and Estimated Current LTV
ratios for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination.
The Estimated Current LTV for each loan is estimated by reference to a home price appreciation index.
As of December 31, 2015 and 2014, 48% of the Company’s HELOC and First Mortgage portfolio was concentrated in
California. These loans have performed in a manner consistent with the portfolio as a whole.
Weighted Percent of Loans
Avera
g
e Utilization that are on
December 31, 2015 Balance U
p
dated FICO Rate (1)
N
onaccrual Status
Residential real estate mortgages:
Estimated Current LTV
<70% $ 7,508 774 N/A
0.03 %
>70% – <90% 759 764 N/A
0.31 %
>90% – <100% 37 736 N/A
5.54 %
>100% 30 713 N/A
7.72 %
Total $ 8,334 773 N/A
0.11 %
Home equity loans and lines of credit:
Estimated Current LTV
<70% $ 2,277 772 37 % 0.09 %
>70% – <90% 373 760 50 % 0.48 %
>90% – <100% 48 748 63 % 1.02 %
>100% 37 739 67 % 1.79 %
Total $ 2,735 770 39 % 0.18 %
Pledged asset lines:
Weighted Average LTV
=70% $ 3,232 764 49 % -
(1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit.
N/A Not applicable.