Wells Fargo 2013 Annual Report Download - page 172

Note 6: Loans and Allowance for Credit Losses (continued)
(in millions)
Real estate
1-4 family
first
mortgage
eal estate
1-4 family
junior lien
mortgage
R
Credit
card Automobile
Other
revolving
credit and
installment Total
December 31, 2013
By updated FICO:
< 600 $ 14,128 5,047 2,404 8,400 956 30,935
600-639 9,030 3,247 2,175 5,925 1,015 21,392
640-679 14,917 5,984 4,176 8,827 2,156 36,060
680-719 24,336 10,042 5,398 8,992 3,914 52,682
720-759 32,991 13,575 5,530 6,546 5,263 63,905
760-799 72,062 19,238 4,535 6,313 6,828 108,976
800+ 33,311 7,705 2,408 5,397 5,127 53,948
No FICO available 2,885 953 244 408 1,992 6,482
FICO not required - - - - 5,007 5,007
Government insured/guaranteed loans (1) 30,737 - - - 10,696 41,433
Total consumer loans (excluding PCI) 234,397 65,791 26,870 50,808 42,954 420,820
Total consumer PCI loans (carrying value) 24,100 123 - - - 24,223
Total consumer loans $ 258,497 65,914 26,870 50,808 42,954 445,043
December 31, 2012
By updated FICO:
< 600 $ 17,662 6,122 2,314 7,928 1,163 35,189
600-639 10,208 3,660 1,961 5,451 952 22,232
640-679 15,764 6,574 3,772 8,142 2,011 36,263
680-719 24,725 11,361 4,990 7,949 3,691 52,716
720-759 31,502 15,992 5,114 5,787 4,942 63,337
760-799 63,946 21,874 4,109 5,400 6,971 102,300
800+ 26,044 8,526 2,223 4,443 1,912 43,148
No FICO available 3,491 1,204 157 898 2,882 8,632
FICO not required - - - - 5,403 5,403
Government insured/guaranteed loans (1) 29,719 - - - 12,446 42,165
Total consumer loans (excluding PCI) 223,061 75,313 24,640 45,998 42,373 411,385
Total consumer PCI loans (carrying value) 26,839 152 - - - 26,991
Total consumer loans $ 249,900 75,465 24,640 45,998 42,373 438,376
(1) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA and student loans whose repayments are predominantly guaranteed by
agencies on behalf of the U.S. Department of Education under FFELP.
LTV refers to the ratio comparing the loan’s unpaid principal
balance to the property’s collateral value. CLTV refers to the
combination of first mortgage and junior lien mortgage
(including unused line amounts for credit line products) ratios.
LTVs and CLTVs are updated quarterly using a cascade approach
which first uses values provided by automated valuation models
(AVMs) for the property. If an AVM is not available, then the
value is estimated using the original appraised value adjusted by
the change in Home Price Index (HPI) for the property location.
If an HPI is not available, the original appraised value is used.
The HPI value is normally the only method considered for high
value properties, generally with an original value of $1 million or
more, as the AVM values have proven less accurate for these
properties.
The following table shows the most updated LTV and CLTV
distribution of the real estate 1-4 family first and junior lien
mortgage loan portfolios. We consider the trends in residential
real estate markets as we monitor credit risk and establish our
allowance for credit losses. LTV does not necessarily reflect the
likelihood of performance of a given loan, but does provide an
indication of collateral value. In the event of a default, any loss
should be limited to the portion of the loan amount in excess of
the net realizable value of the underlying real estate collateral
value. Certain loans do not have an LTV or CLTV primarily due
to industry data availability and portfolios acquired from or
serviced by other institutions.
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