JP Morgan Chase 2015 Annual Report Download - page 283

JPMorgan Chase & Co./2015 Annual Report 273
with the purchaser. See Note 29 for additional information
about the Firm’s loan sales- and securitization-related
indemnifications.
See Note 17 for additional information about the impact of
the Firm’s sale of certain excess MSRs.
The following table summarizes the activities related to
loans sold to the U.S. GSEs, loans in securitization
transactions pursuant to Ginnie Mae guidelines, and other
third-party-sponsored securitization entities.
Year ended December 31,
(in millions) 2015 2014 2013
Carrying value of loans sold $ 42,161 $ 55,802 $ 166,028
Proceeds received from loan
sales as cash $ 313 $ 260 $ 782
Proceeds from loans sales as
securities(a) 41,615 55,117 163,373
Total proceeds received from
loan sales(b) $ 41,928 $ 55,377 $ 164,155
Gains on loan sales(c) $ 299 $ 316 $ 302
(a) Predominantly includes securities from U.S. GSEs and Ginnie Mae that
are generally sold shortly after receipt.
(b) Excludes the value of MSRs retained upon the sale of loans. Gains on
loan sales include the value of MSRs.
(c) The carrying value of the loans accounted for at fair value
approximated the proceeds received upon loan sale.
Options to repurchase delinquent loans
In addition to the Firm’s obligation to repurchase certain
loans due to material breaches of representations and
warranties as discussed in Note 29, the Firm also has the
option to repurchase delinquent loans that it services for
Ginnie Mae loan pools, as well as for other U.S. government
agencies under certain arrangements. The Firm typically
elects to repurchase delinquent loans from Ginnie Mae loan
pools as it continues to service them and/or manage the
foreclosure process in accordance with the applicable
requirements, and such loans continue to be insured or
guaranteed. When the Firm’s repurchase option becomes
exercisable, such loans must be reported on the
Consolidated balance sheets as a loan with a corresponding
liability. As of December 31, 2015 and 2014, the Firm had
recorded on its Consolidated balance sheets $11.1 billion
and $12.4 billion, respectively, of loans that either had
been repurchased or for which the Firm had an option to
repurchase. Predominantly all of these amounts relate to
loans that have been repurchased from Ginnie Mae loan
pools. Additionally, real estate owned resulting from
voluntary repurchases of loans was $343 million and $464
million as of December 31, 2015 and 2014, respectively.
Substantially all of these loans and real estate owned are
insured or guaranteed by U.S. government agencies. For
additional information, refer to Note 14.
Loan delinquencies and liquidation losses
The table below includes information about components of nonconsolidated securitized financial assets, in which the Firm has
continuing involvement, and delinquencies as of December 31, 2015 and 2014.
Securitized assets 90 days past due Liquidation losses
As of or for the year ended December 31, (in millions) 2015 2014 2015 2014 2015 2014
Securitized loans(a)
Residential mortgage:
Prime/ Alt-A & option ARMs $ 66,708 $ 78,294 $ 8,325 $ 11,363 $ 1,946 $ 2,166
Subprime 22,549 25,659 5,448 6,473 1,431 1,931
Commercial and other 80,319 94,438 1,808 1,522 375 1,267
Total loans securitized(b) $ 169,576 $ 198,391 $ 15,581 $ 19,358 $ 3,752 $ 5,364
(a) Total assets held in securitization-related SPEs were $233.6 billion and $254.3 billion, respectively, at December 31, 2015 and 2014. The $169.6 billion
and $198.4 billion, respectively, of loans securitized at December 31, 2015 and 2014, excludes: $62.4 billion and $52.2 billion, respectively, of
securitized loans in which the Firm has no continuing involvement, and $1.6 billion and $3.7 billion, respectively, of loan securitizations consolidated on
the Firm’s Consolidated balance sheets at December 31, 2015 and 2014.
(b) Includes securitized loans that were previously recorded at fair value and classified as trading assets.