JP Morgan Chase 2012 Annual Report Download - page 246

Notes to consolidated financial statements
256 JPMorgan Chase & Co./2012 Annual Report
Residential real estate – excluding PCI loans
Home equity
December 31,
(in millions, except ratios)
Senior lien Junior lien
2012 2011 2012 2011
Loan delinquency(a)
Current $ 18,688 $ 20,992 $ 46,805 $ 54,533
30–149 days past due 330 405 960 1,272
150 or more days past due 367 368 235 230
Total retained loans $ 19,385 $ 21,765 $ 48,000 $ 56,035
% of 30+ days past due to total retained loans 3.60% 3.55% 2.49% 2.68%
90 or more days past due and still accruing $ — $ — $ — $ —
90 or more days past due and government guaranteed(b) ————
Nonaccrual loans(c) 931 495 2,277 (h) 792
Current estimated LTV ratios(d)(e)(f)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660 $ 197 $ 341 $ 4,561 $ 6,463
Less than 660 93 160 1,338 2,037
101% to 125% and refreshed FICO scores:
Equal to or greater than 660 491 663 7,089 8,775
Less than 660 191 241 1,971 2,510
80% to 100% and refreshed FICO scores:
Equal to or greater than 660 1,502 1,850 9,604 11,433
Less than 660 485 601 2,279 2,616
Less than 80% and refreshed FICO scores:
Equal to or greater than 660 13,988 15,350 18,252 19,326
Less than 660 2,438 2,559 2,906 2,875
U.S. government-guaranteed ————
Total retained loans $ 19,385 $ 21,765 $ 48,000 $ 56,035
Geographic region
California $ 2,786 $ 3,066 $ 10,969 $ 12,851
New York 2,847 3,023 9,753 10,979
Illinois 1,358 1,495 3,265 3,785
Florida 892 992 2,572 3,006
Texas 2,508 3,027 1,503 1,859
New Jersey 652 687 2,838 3,238
Arizona 1,183 1,339 2,151 2,552
Washington 651 714 1,629 1,895
Ohio 1,514 1,747 1,091 1,328
Michigan 910 1,044 1,169 1,400
All other(g) 4,084 4,631 11,060 13,142
Total retained loans $ 19,385 $ 21,765 $ 48,000 $ 56,035
(a) Individual delinquency classifications included mortgage loans insured by U.S. government agencies as follows: current includes $3.8 billion and $3.0 billion; 30–
149 days past due includes $2.3 billion and $2.3 billion; and 150 or more days past due includes $9.5 billion and $10.3 billion at December 31, 2012 and 2011,
respectively.
(b) These balances, which are 90 days or more past due but insured by U.S. government agencies, are excluded from nonaccrual loans. In predominately all cases,
100% of the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing
guidelines. These amounts are excluded from nonaccrual loans because reimbursement of insured and guaranteed amounts is proceeding normally. At
December 31, 2012 and 2011, these balances included $6.8 billion and $7.0 billion, respectively, of loans that are no longer accruing interest because interest has
been curtailed by the U.S. government agencies although, in predominantly all cases, 100% of the principal is still insured. For the remaining balance, interest is
being accrued at the guaranteed reimbursement rate.
(c) At December 31, 2012, included $1.7 billion of loans recorded in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and
not reaffirmed by the borrower to be reported as nonaccrual loans, regardless of their delinquency status. This $1.7 billion consisted of $450 million, $440 million,
$500 million, and $357 million for home equity - senior lien, home equity - junior lien, prime mortgage, including option ARMs, and subprime mortgages,
respectively. Certain of these loans have previously been reported as performing TDRs (e.g., loans that were previously modified under one of the Firm’s loss
mitigation programs and that have made at least six payments under the modified payment terms).
(d) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum,
quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and
forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios
are necessarily imprecise and should be viewed as estimates.
(e) Junior lien represents combined LTV, which considers all available lien positions related to the property. All other products are presented without consideration of
subordinate liens on the property.
(f) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(g) At both December 31, 2012 and 2011, included mortgage loans insured by U.S. government agencies of $15.6 billion.
(h) Includes $1.2 billion of performing junior liens at December 31, 2012, that are subordinate to senior liens that are 90 days or more past due; such junior liens are
now being reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Of the total, $1.1 billion were current at December 31,
2012. Prior periods have not been restated.
(i) At December 31, 2012 and 2011, excluded mortgage loans insured by U.S. government agencies of $11.8 billion and $12.6 billion, respectively. These amounts
were excluded as reimbursement of insured amounts is proceeding normally.