Morgan Stanley 2014 Annual Report Download - page 226

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
recourse to the Company. In certain other failed sale transactions, the Company has the right to remove assets or
provide additional recourse through derivatives such as total return swaps, guarantees or other forms of
involvement.
The following table presents information about the carrying value (equal to fair value) of assets and liabilities
resulting from transfers of financial assets treated by the Company as secured financings:
At December 31, 2014 At December 31, 2013
Carrying Value of Carrying Value of
Assets Liabilities Assets Liabilities
(dollars in millions)
Credit-linked notes ......................................... $ 47 $ 39 $ 48 $ 41
Equity-linked transactions .................................... 16 16 40 35
Other .................................................... 289 289 157 156
Mortgage Servicing Activities.
The Company services residential mortgage loans in the U.S. owned by SPEs consolidated by the Company. As
of December 31, 2014, the Company no longer services residential and commercial mortgage loans in Europe.
The Company provides no credit support as part of its servicing activities. The Company is required to make
servicing advances to the extent that it believes that such advances will be reimbursed. Reimbursement of
servicing advances is a senior obligation of the SPE, senior to the most senior beneficial interests outstanding.
Outstanding advances are included in Other assets and are recorded at cost, net of allowances. There were no
allowances at December 31, 2014 and December 31, 2013. Advances at December 31, 2014 and December 31,
2013 totaled approximately $17 million and $110 million, respectively.
The following tables present information about the Company’s mortgage servicing activities for SPEs to which
the Company transferred loans at December 31, 2014 and December 31, 2013:
At December 31, 2014
Residential
Mortgage
Unconsolidated
SPEs
Residential
Mortgage
Consolidated
SPEs
Commercial
Mortgage
Unconsolidated
SPEs
(dollars in millions)
Assets serviced (unpaid principal balance) ..................... $ — $431 $ —
Amounts past due 90 days or greater (unpaid principal
balance)(1) ........................................... $ — $ 29 $ —
Percentage of amounts past due 90 days or greater(1) ............ — 6.7% —
Credit losses ............................................ $ — $ 4 $ —
(1) Amounts include loans that are at least 90 days contractually delinquent, loans for which the borrower has filed for bankruptcy, loans in
foreclosure and real estate owned.
222