BB&T 2015 Annual Report Download - page 124

TableofContents
During 2015, BB&T sold American Coastal, which resulted in the allocation and write-off of goodwill from the Insurance Services segment.
The following table presents information for identifiable intangible assets subject to amortization:
 





 
 



 
 

 
CDI 8.4 $ 903 $ (634) $ 269 $ 693 $ (585) $ 108
Other, primarily customer relationship
intangibles 14.0 1,164 (747) 417 1,088 (691) 397
Total $ 2,067 $ (1,381) $ 686 $ 1,781 $ (1,276) $ 505

    

Estimated amortization expense of identifiable intangibles $ 117 $ 98 $ 83 $ 69 $ 57


Residential Mortgage Banking Activities
The following tables summarize residential mortgage banking activities. BB&T manages its own residential mortgage loans, including PCI loans.

 

UPB of mortgage loan servicing portfolio $ 116,817 $ 115,476
UPB of home equity loan servicing portfolio 5,352 6,781
UPB of residential mortgage and home equity loan servicing portfolio $ 122,169 $ 122,257
UPB of residential mortgage loans serviced for others (primarily agency
conforming fixed rate) $ 91,132 $ 90,230
Mortgage loans sold with recourse 702 667
Maximum recourse exposure from mortgage loans sold with recourse liability 326 344
Indemnification, recourse and repurchase reserves 79 94
FHA-insured mortgage loan reserve 85 85
During June 2014, BB&T received notice from the HUD-OIG that BB&T had been selected for an audit/survey to assess BB&T's compliance with FHA loan
origination and quality control requirements. In late 2014 and in 2015, BB&T received subpoenas from the HUD-OIG and the Department of Justice seeking
additional information regarding its lending practices in connection with loans insured by the FHA. BB&T is cooperating with the investigation. While the
outcome of the investigation is unknown and neither the Department of Justice nor the HUD-OIG has asserted any claims, similar reviews and related matters
with other financial institutions have resulted in cash settlements and other remedial actions. BB&T identified a potential exposure related to losses incurred
by the FHA on defaulted loans that ranges from $25 million to $105 million and recognized an $85 million charge during 2014. The income statement
impact of this adjustment was included in other expense on the Consolidated Statements of lncome. The ultimate resolution of this matter is uncertain and
the estimates of this exposure are subject to the application of significant judgment and therefore cannot be predicted with certainty at this time.
During 2014, BB&T also recognized a $33 million adjustment related to the indemnification reserves for mortgage loans sold, which represents an increase
in estimated losses that may be incurred on FHA-insured mortgage loans that have not yet defaulted. The income statement impact of this adjustment was
included in loan-related expense on the Consolidated Statements of Income.
Payments made to date for recourse exposure on residential mortgage loans sold with recourse liability have been immaterial.
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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