Description of table L.218 - One-to-four-family Residential Mortgages

One-to-four-family residential mortgages, also referred to as home mortgages, are loans collateralized by residential properties with one to four units and condominiums and cooperatives in structures with five or more units, as well as construction and land development loans on residential properties. On transaction table (F.218) a memo item shows charge-offs for total one-to-four-family residential mortgage loans. All one-to-four-family residential mortgage loan charge-offs are excluded from transactions data and are accounted for as other changes in volume. <p>An October 31, 2014 FEDS Note, "Accounting for Mortgage Charge-offs in the Financial Accounts of the United States" by James Kennedy, Maria Perozek, Paul Smith, describes the treatment of mortgage charge-offs in more detail. The note is available at <a href=""></a>.Another memo item shown on both the transaction and level tables (F.218 and L.218) shows loans made under home equity lines of credit and home equity loans secured by junior liens with detail by lender. Home equity loans are included in the one-to-four-family residential mortgage data. The household sector is the primary borrower of one-to-four-family residential mortgages. Borrowing to finance the purchase of investment properties is considered borrowing by the nonfinancial noncorporate business sector. One-to-four-family residential mortgages held by the household sector are typically seller-financed loans. One-to-four-family residential mortgages that have been securitized and removed from the originator's balance sheet are reported as assets of either the sector for agency- and GSE-backed mortgage pools or the sector for issuers of asset-backed securities.

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