JP Morgan Chase 2015 Annual Report Download - page 256

Notes to consolidated financial statements
246 JPMorgan Chase & Co./2015 Annual Report
The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-
for-sale during the periods indicated. These tables exclude loans recorded at fair value. The Firm manages its exposure to
credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures.
2015
Year ended December 31,
(in millions)
Consumer, excluding
credit card Credit card Wholesale Total
Purchases $ 5,279 (a)(b) $ — $ 2,154 $ 7,433
Sales 5,099 — 9,188 14,287
Retained loans reclassified to held-for-sale 1,514 79 642 2,235
2014
Year ended December 31,
(in millions)
Consumer, excluding
credit card Credit card Wholesale Total
Purchases $ 7,434 (a)(b) $ — $ 885 $ 8,319
Sales 6,655 — (c) 7,381 14,036
Retained loans reclassified to held-for-sale 1,190 3,039 581 4,810
2013
Year ended December 31,
(in millions)
Consumer, excluding
credit card Credit card Wholesale Total
Purchases $ 7,616 (a)(b) $ 328 $ 697 $ 8,641
Sales 4,845 — 4,232 9,077
Retained loans reclassified to held-for-sale 1,261 309 5,641 7,211
(a) Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Ginnie Mae guidelines.
The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with
applicable requirements of Ginnie Mae, the Federal Housing Administration (“FHA”), Rural Housing Services (“RHS”) and/or the U.S. Department of
Veterans Affairs (“VA”).
(b) Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards.
Such purchases were $50.3 billion, $15.1 billion and $5.7 billion for the years ended December 31, 2015, 2014 and 2013, respectively.
(c) Prior period amounts have been revised to conform with current period presentation.
The following table provides information about gains and losses, including lower of cost or fair value adjustments, on loan sales
by portfolio segment.
Year ended December 31, (in millions) 2015 2014 2013
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)(a)
Consumer, excluding credit card $ 305 $ 341 $ 313
Credit card 1(241) 3
Wholesale 34 101 (76)
Total net gains on sales of loans (including lower of cost or fair value adjustments) $ 340 $ 201 $ 240
(a) Excludes sales related to loans accounted for at fair value.