JP Morgan Chase 2014 Annual Report Download - page 247

JPMorgan Chase & Co./2014 Annual Report 245
The following tables represent the Firm’s delinquency statistics for junior lien home equity loans and lines as of December 31,
2014 and 2013.
Delinquencies
Total 30+ day
delinquency
rate
December 31, 2014 30–89 days
past due 90–149 days past due 150+ days past due Total loans(in millions, except ratios)
HELOCs:(a)
Within the revolving period(b) $ 233 $ 69 $ 141 $ 25,252 1.75%
Beyond the revolving period 108 37 107 7,979 3.16
HELOANs 66 20 19 3,144 3.34
Total $ 407 $ 126 $ 267 $ 36,375 2.20%
Delinquencies
Total 30+ day
delinquency
rate
December 31, 2013 30–89 days
past due 90–149 days past due 150+ days past due Total loans(in millions, except ratios)
HELOCs:(a)
Within the revolving period(b) $ 341 $ 104 $ 162 $ 31,848 1.91%
Beyond the revolving period 84 21 46 4,980 3.03
HELOANs 86 26 16 3,922 3.26
Total $ 511 $ 151 $ 224 $ 40,750 2.17%
(a) These HELOCs are predominantly revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period, but also
include HELOCs originated by Washington Mutual that require interest-only payments beyond the revolving period.
(b) The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are
experiencing financial difficulty or when the collateral does not support the loan amount.
Home equity lines of credit (“HELOCs”) beyond the
revolving period and home equity loans (“HELOANs”) have
higher delinquency rates than do HELOCs within the
revolving period. That is primarily because the fully-
amortizing payment that is generally required for those
products is higher than the minimum payment options
available for HELOCs within the revolving period. The higher
delinquency rates associated with amortizing HELOCs and
HELOANs are factored into the loss estimates produced by
the Firm’s delinquency roll-rate methodology, which
estimates defaults based on the current delinquency status
of a portfolio.