Bank of America 2013 Annual Report Download - page 200

198 Bank of America 2013
The table below summarizes select information related to first-lien mortgage securitization trusts in which the Corporation held a
variable interest at December 31, 2013 and 2012.
First-lien Mortgage VIEs
Residential Mortgage
Non-agency
Agency Prime Subprime Alt-A
Commercial
Mortgage
December 31 December 31 December 31
(Dollars in millions) 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Unconsolidated VIEs
Maximum loss exposure (1) $ 21,140 $ 28,591 $ 1,527 $ 2,038 $406 $ 410 $437 $ 367 $432 $ 702
On-balance sheet assets
Senior securities held (2):
Trading account assets $ 650 $ 619 $— $16
$1
$14
$3
$—
$14 $12
Debt securities carried at fair value 19,451 26,421 988 1,388 220 210 109 128 306 581
Subordinate securities held (2):
Trading account assets ————83——13 13
Debt securities carried at fair value ——15 21 69——53 —
Residual interests held ——13 18 —9——16 40
All other assets (3) 1,039 1,551 71 64 11325 239 ——
Total retained positions $ 21,140 $ 28,591 $ 1,087 $ 1,507 $236 $ 246 $437 $ 367 $402 $ 646
Principal balance outstanding (4) $ 437,765 $ 780,202 $ 25,104 $ 47,348 $ 36,854 $ 63,813 $ 56,454 $ 80,860 $19,730 $ 56,733
Consolidated VIEs
Maximum loss exposure (1) $ 42,420 $ 46,959 $79
$ 104 $368 $ 390 $—
$—
$—$—
On-balance sheet assets
Trading account assets $ 1,640 $—
$—
$—
$—
$—
$—
$—
$—$—
Loans and leases 40,316 45,991 140 283 803 722 ————
Allowance for loan and lease losses (3) (4) ————————
Loans held-for-sale —————914 ————
All other assets 474 972 —10 791 ————
Total assets $ 42,427 $ 46,959 $ 140 $ 293 $810 $ 1,727 $—
$—
$—$—
On-balance sheet liabilities
Short-term borrowings $— $—
$—
$—
$—
$ 741 $— $—
$—$—
Long-term debt 7—61 212 803 941 ————
All other liabilities ————7—————
Total liabilities $ 7 $— $61
$ 212 $810 $ 1,682 $— $—
$—$—
(1) Maximum loss exposure excludes the liability for representations and warranties obligations and corporate guarantees and also excludes servicing advances and MSRs. For additional information,
see Note 7 – Representations and Warranties Obligations and Corporate Guarantees and Note 23 – Mortgage Servicing Rights.
(2) As a holder of these securities, the Corporation receives scheduled principal and interest payments. During 2013 and 2012, there were no OTTI losses recorded on those securities classified as
AFS debt securities.
(3) Not included in the table above are all other assets of $1.6 billion and $12.1 billion, representing the unpaid principal balance of mortgage loans eligible for repurchase from unconsolidated residential
mortgage securitization vehicles, principally guaranteed by GNMA, and all other liabilities of $1.6 billion and $12.1 billion, representing the principal amount that would be payable to the securitization
vehicles if the Corporation were to exercise the repurchase option, at December 31, 2013 and 2012.
(4) Principal balance outstanding includes loans the Corporation transferred with which the Corporation has continuing involvement, which may include servicing the loans.
During 2013 and 2012, the Corporation deconsolidated
several non-agency residential mortgage trusts with total assets
of $871 million and $1.2 billion following the sale of retained
interests or the transfer of servicing to a third party.
Home Equity Loans
The Corporation retains interests in home equity securitization
trusts to which it transferred home equity loans. These retained
interests include senior and subordinate securities and residual
interests. In addition, the Corporation may be obligated to provide
subordinate funding to the trusts during a rapid amortization event.
The Corporation also services the loans in the trusts. Except as
described below and in Note 7 – Representations and Warranties
Obligations and Corporate Guarantees, the Corporation does not
provide guarantees or recourse to the securitization trusts other
than standard representations and warranties. There were no
securitizations of home equity loans during 2013 and 2012 and
all of the home equity trusts have entered the rapid amortization
phase.