Bank of America 2010 Annual Report Download - page 59

Cumulative GSE Repurchase Claims by Vintage
Loan age (in quarters)
Claims received (EAD)(1)
(Dollars in millions)
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
2004
181234567891011121314151617 19 20+
2005 2006 2007 2008 2009+
$-
(1)
Exposure at default (EAD) represents the unpaid principal balance at the time of default or the unpaid principal balance as of December 31, 2010.
Bank of America and legacy Countrywide sold approximately $1.1 trillion of
loans originated from 2004 through 2008 to the GSEs. As of December 31,
2010, slightly less than 10 percent of the loans in these vintages have
defaulted or are 180 days or more past due (severely delinquent). At least 25
payments have been made on approximately 55 percent of severely delin-
quent or defaulted loans. Through December 31, 2010, we have received
approximately $21.6 billion in repurchase claims associated with these
vintages, representing approximately two percent of the loans sold to the
GSEs in these vintages. Including the agreement reached with FNMA on
December 31, 2010, we have resolved $18.2 billion of these claims with a net
loss experience of approximately 27 percent. The claims resolved and the
loss rate do not include $839 million in claims extinguished as a result of the
agreement with FHLMC due to the global nature of the agreement and,
specifically, the absence of a formal apportionment of the agreement amount
between current and future claims. Our collateral loss severity rate on ap-
proved repurchases has averaged approximately 45 to 55 percent. Although
the level of repurchase claims from the GSEs has been elevated for the last
few quarters, the agreements with the GSEs have resulted in a decrease in
the total number of outstanding repurchase claims at December 31, 2010
compared to December 31, 2009. Based on the information derived from the
historical GSE experience, including the GSE agreements discussed on the
previous page, we believe we are 70 percent to 75 percent through the receipt
of the GSE repurchase claims that we ultimately expect to receive.
Bank of America 2010 57