JP Morgan Chase 2013 Annual Report Download - page 119

JPMorgan Chase & Co./2013 Annual Report 125
Geographic composition of residential real estate loans
At December 31, 2013, California had the greatest concentration of residential real estate loans with 25% of the total retained
residential real estate loan portfolio, excluding mortgage loans insured by U.S. government agencies and PCI loans, compared
with 24% at December 31, 2012. Of these loans, $85.9 billion, or 62%, were concentrated in California, New York, Illinois,
Florida and Texas at December 31, 2013, compared with $82.4 billion, or 60%, at December 31, 2012. The unpaid principal
balance of PCI loans concentrated in these five states represented 74% of total PCI loans at December 31, 2013, compared
with 73% at December 31, 2012.
Current estimated LTVs of residential real estate
loans
The current estimated average LTV ratio for residential real
estate loans retained, excluding mortgage loans insured by
U.S. government agencies and PCI loans, was 75% at
December 31, 2013, compared with 81% at December 31,
2012. Of these loans, 9% had a current estimated LTV ratio
greater than 100%, and 2% had a current estimated LTV
ratio greater than 125% at December 31, 2013, compared
with 20% and 8%, respectively, at December 31, 2012.
Although home prices continue to recover, the decline in
home prices since 2007 has had a significant impact on the
collateral values underlying the Firm’s residential real
estate loan portfolio. In general, the delinquency rate for
loans with high LTV ratios is greater than the delinquency
rate for loans in which the borrower has equity in the
collateral. While a large portion of the loans with current
estimated LTV ratios greater than 100% continue to pay
and are current, the continued willingness and ability of
these borrowers to pay remains a risk.