Bank of America 2014 Annual Report Download - page 192

190 Bank of America 2014
The table below summarizes select information related to first-lien mortgage securitization trusts in which the Corporation held a
variable interest at December 31, 2014 and 2013.
First-lien Mortgage VIEs
Residential Mortgage
Non-agency
Agency Prime Subprime Alt-A
Commercial
Mortgage
December 31 December 31 December 31
(Dollars in millions) 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Unconsolidated VIEs
Maximum loss exposure (1) $ 14,918 $ 21,140 $ 1,288 $ 1,527 $ 3,167 $ 591 $710 $ 437 $352 $ 432
On-balance sheet assets
Senior securities held (2):
Trading account assets $ 584 $ 650 $3 $—
$14
$1
$81
$3
$54 $14
Debt securities carried at fair value 13,473 19,451 816 988 2,811 220 383 109 76 306
Held-to-maturity securities 837 1,012 ——————42 —
Subordinate securities held (2):
Trading account assets —————81—58 13
Debt securities carried at fair value ——12 15 56——58 53
Held-to-maturity securities ————————15 —
Residual interests held ——10 13 ————22 16
All other assets (3) 24 27 56 71 11245 325 ——
Total retained positions $ 14,918 $ 21,140 $ 897 $ 1,087 $ 2,831 $ 236 $710 $ 437 $325 $ 402
Principal balance outstanding (4) $ 397,055 $ 437,765 $ 20,167 $ 25,104 $ 32,592 $ 36,854 $ 50,054 $ 56,454 $20,593 $ 19,730
Consolidated VIEs
Maximum loss exposure (1) $ 38,345 $ 42,420 $77
$79
$206 $ 183 $—
$—
$—$—
On-balance sheet assets
Trading account assets $ 1,538 $ 1,640 $— $—
$30
$—
$—
$—
$—$—
Loans and leases 36,187 40,316 130 140 768 803 ————
Allowance for loan and lease losses (2) (3) ————————
All other assets 623 474 6—15 7————
Total assets $ 38,346 $ 42,427 $ 136 $ 140 $813 $ 810 $—
$—
$—$—
On-balance sheet liabilities
Long-term debt $1 $7
$56
$61
$770 $ 803 $—
$—
$—$—
All other liabilities ——3—13 7————
Total liabilities $ 1 $7 $59
$61
$783 $ 810 $—
$—
$—$—
(1) Maximum loss exposure excludes the liability for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations.
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 2014 and 2013, 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 $635 million and $1.6 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 $635 million and $1.6 billion, representing the principal amount that would be payable to the securitization
vehicles if the Corporation was to exercise the repurchase option, at December 31, 2014 and 2013.
(4) Principal balance outstanding includes loans the Corporation transferred with which it has continuing involvement, which may include servicing the loans.
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 typically 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 2014 and 2013, and
all of the home equity trusts that hold revolving home equity lines
of credit (HELOCs) have entered the rapid amortization phase.