JP Morgan Chase 2015 Annual Report Download - page 266

Notes to consolidated financial statements
256 JPMorgan Chase & Co./2015 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
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Carrying value(a) $14,989 $17,095 $ 8,893 $10,220 $ 3,263 $ 3,673 $13,853 $15,708 $40,998 $46,696
Related allowance for loan losses(b) 1,708 1,758 985 1,193 —180 49 194 2,742 3,325
Loan delinquency (based on unpaid principal
balance)
Current $14,387 $16,295 $ 7,894 $ 8,912 $ 3,232 $ 3,565 $12,370 $13,814 $37,883 $42,586
30–149 days past due 322 445 424 500 439 536 711 858 1,896 2,339
150 or more days past due 633 1,000 601 837 380 551 1,272 1,824 2,886 4,212
Total loans $15,342 $17,740 $ 8,919 $10,249 $ 4,051 $ 4,652 $14,353 $16,496 $42,665 $49,137
% of 30+ days past due to total loans 6.22% 8.15% 11.49% 13.05% 20.22% 23.37% 13.82% 16.26% 11.21% 13.33%
Current estimated LTV ratios (based on unpaid
principal balance)(c)(d)(e)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660 $ 153 $ 301 $10$22$10$22$19$50$ 192 $ 395
Less than 660 80 159 28 52 55 106 36 84 199 401
101% to 125% and refreshed FICO scores:
Equal to or greater than 660 942 1,448 120 268 77 144 166 330 1,305 2,190
Less than 660 444 728 152 284 220 390 239 448 1,055 1,850
80% to 100% and refreshed FICO scores:
Equal to or greater than 660 2,709 3,591 816 1,405 331 451 977 1,695 4,833 7,142
Less than 660 1,136 1,485 614 969 643 911 1,050 1,610 3,443 4,975
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660 6,724 6,626 4,243 4,211 863 787 7,073 7,053 18,903 18,677
Less than 660 2,265 2,308 2,438 2,427 1,642 1,585 4,065 4,291 10,410 10,611
No FICO/LTV available 889 1,094 498 611 210 256 728 935 2,325 2,896
Total unpaid principal balance $15,342 $17,740 $ 8,919 $10,249 $ 4,051 $ 4,652 $14,353 $16,496 $42,665 $49,137
Geographic region (based on unpaid principal
balance)
California $ 9,205 $10,671 $ 5,172 $ 5,965 $ 1,005 $ 1,138 $ 8,108 $ 9,190 $23,490 $26,964
New York 788 876 580 672 400 463 813 933 2,581 2,944
Illinois 358 405 263 301 196 229 333 397 1,150 1,332
Texas 224 273 94 92 243 281 75 85 636 731
Florida 1,479 1,696 586 689 373 432 1,183 1,440 3,621 4,257
New Jersey 310 348 238 279 139 165 470 553 1,157 1,345
Washington 819 959 194 225 81 95 339 395 1,433 1,674
Arizona 281 323 143 167 76 85 203 227 703 802
Michigan 44 53 141 166 113 130 150 182 448 531
Ohio 17 20 45 48 62 72 61 69 185 209
All other 1,817 2,116 1,463 1,645 1,363 1,562 2,618 3,025 7,261 8,348
Total unpaid principal balance $15,342 $17,740 $ 8,919 $10,249 $ 4,051 $ 4,652 $14,353 $16,496 $42,665 $49,137
(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. Effective December 31, 2015, the current estimated LTV ratios reflect updates to the nationally recognized home price index valuation estimates incorporated into
the Firm’s home valuation models. The prior period ratios have been revised to conform with these updates in the home price index.
(d) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(e) The current period current estimated LTV ratios disclosures have been updated to reflect where either the FICO score or estimated property value is unavailable. The prior
period amounts have been revised to conform with the current presentation.