BB&T 2008 Annual Report Download - page 106

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company also has securitized residential mortgage loans and retained the resulting securities available
for sale. As of December 31, 2008, the fair value of the securities available for sale still owned by BB&T was $591
million and the remaining unpaid principal balance of the underlying loans totaled $573 million. Based on the
performance of the underlying loans and general liquidity of the securities, the Company’s recovery of the cost
basis in the securities has not been significantly impacted by changes in interest rates, prepayment speeds or
credit losses.
The following table includes a summary of residential mortgage loans managed or securitized and related
delinquencies and net charge-offs.
Years Ended December 31,
2008 2007
(Dollars in millions)
Mortgage Loans Managed or Securitized (1) $19,829 $19,029
Less: Loans Securitized and Transferred to
Securities Available for Sale 573 669
Less: Loans Held for Sale 1,343 723
Less: Mortgage Loans Sold with Recourse 822 170
Mortgage Loans Held for Investment $17,091 $17,467
Mortgage Loans on Nonaccrual Status $ 375 $ 119
Mortgage Loans 90 Days Past Due and Still Accruing Interest 165 85
Mortgage Loan Net Charge-offs 95 10
(1) Balances exclude loans serviced for others, with no other continuing involvement.
BB&T also arranges and services commercial real estate mortgages through Grandbridge Real Estate
Capital, LLC (“Grandbridge”) the commercial mortgage banking subsidiary of Branch Bank. During the years
ended December 31, 2008, 2007 and 2006, Grandbridge originated $3.7 billion, $3.0 billion and $2.9 billion,
respectively, of commercial real estate mortgages, all of which were arranged for third party investors and
serviced by Grandbridge. As of December 31, 2008, 2007 and 2006, Grandbridge’s portfolio of commercial real
estate mortgages serviced for others totaled $23.9 billion, $20.8 billion and $9.2 billion, respectively. Commercial
real estate mortgage loans serviced for others are not included in loans on the accompanying Consolidated
Balance Sheets. At December 31, 2008, Grandbridge had $3.3 billion in loans serviced for others that were
covered by loss sharing agreements. Grandbridge’s maximum recourse exposure associated with these loans is
approximately $818 million. Mortgage servicing rights related to commercial mortgage loans totaled $98 million,
$88 million and $28 million at December 31, 2008, 2007 and 2006, respectively.
106