JP Morgan Chase 2014 Annual Report Download - page 254

Notes to consolidated financial statements
252 JPMorgan Chase & Co./2014 Annual Report
Residential real estate – PCI loans
The table below sets forth information about the Firm’s consumer, excluding credit card, PCI loans.
December 31,
(in millions, except ratios)
Home equity Prime mortgage Subprime mortgage Option ARMs Total PCI
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Carrying value(a) $17,095 $18,927 $10,220 $12,038 $ 3,673 $ 4,175 $15,708 $17,915 $46,696 $53,055
Related allowance for loan losses(b) 1,758 1,758 1,193 1,726 180 180 194 494 3,325 4,158
Loan delinquency (based on unpaid principal
balance)
Current $16,295 $18,135 $ 8,912 $10,118 $ 3,565 $ 4,012 $13,814 $15,501 $42,586 $47,766
30–149 days past due 445 583 500 589 536 662 858 1,006 2,339 2,840
150 or more days past due 1,000 1,112 837 1,169 551 797 1,824 2,716 4,212 5,794
Total loans $17,740 $19,830 $10,249 $11,876 $ 4,652 $ 5,471 $16,496 $19,223 $49,137 $56,400
% of 30+ days past due to total loans 8.15% 8.55% 13.05% 14.80% 23.37% 26.67% 16.26% 19.36% 13.33% 15.31%
Current estimated LTV ratios (based on unpaid
principal balance)(c)(d)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660 $ 513 $ 1,168 $ 45 $ 240 $ 34 $ 115 $ 89 $ 301 $ 681 $ 1,824
Less than 660 273 662 97 290 160 459 150 575 680 1,986
101% to 125% and refreshed FICO scores:
Equal to or greater than 660 2,245 3,248 456 1,017 215 316 575 1,164 3,491 5,745
Less than 660 1,073 1,541 402 884 509 919 771 1,563 2,755 4,907
80% to 100% and refreshed FICO scores:
Equal to or greater than 660 4,171 4,473 2,154 2,787 519 544 2,418 3,311 9,262 11,115
Less than 660 1,647 1,782 1,316 1,699 1,006 1,197 1,996 2,769 5,965 7,447
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660 5,824 5,077 3,663 2,897 719 521 6,593 5,671 16,799 14,166
Less than 660 1,994 1,879 2,116 2,062 1,490 1,400 3,904 3,869 9,504 9,210
Total unpaid principal balance $17,740 $19,830 $10,249 $11,876 $ 4,652 $ 5,471 $16,496 $19,223 $49,137 $56,400
Geographic region (based on unpaid principal
balance)
California $10,671 $11,937 $ 5,965 $ 6,845 $ 1,138 $ 1,293 $ 9,190 $10,419 $26,964 $30,494
New York 876 962 672 807 463 563 933 1,196 2,944 3,528
Illinois 405 451 301 353 229 283 397 481 1,332 1,568
Florida 1,696 1,865 689 826 432 526 1,440 1,817 4,257 5,034
Texas 273 327 92 106 281 328 85 100 731 861
New Jersey 348 381 279 334 165 213 553 701 1,345 1,629
Arizona 323 361 167 187 85 95 227 264 802 907
Washington 959 1,072 225 266 95 112 395 463 1,674 1,913
Michigan 53 62 166 189 130 145 182 206 531 602
Ohio 20 23 48 55 72 84 69 75 209 237
All other 2,116 2,389 1,645 1,908 1,562 1,829 3,025 3,501 8,348 9,627
Total unpaid principal balance $17,740 $19,830 $10,249 $11,876 $ 4,652 $ 5,471 $16,496 $19,223 $49,137 $56,400
(a) Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.
(b) Management concluded as part of the Firm’s regular assessment of the PCI loan pools that it was probable that higher expected credit losses would result in a
decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized.
(c) 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. Current estimated combined LTV for junior lien home equity loans considers all available lien positions,
as well as unused lines, related to the property.
(d) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.