Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 5329

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the carrying value (i.e. the outstanding balance less all specific valuation allowances) of all qualifying single-family residential mortgage loans secured by a first lien when your institution has no other extensions of credit secured by a second lien on the same property to the same consumer, if all of the following criteria are met:

          1. The loan is prudently underwritten;

          2. The loan is performing and not more than 90 days past due; and

          3. One of the following is true:

             a) the loan-to-value ratio (LTV) does not exceed 80% at
origination,
          
             b) the extension of credit is insured to at least an 80% loan-to-value ratio by private mortgage insurance provided by an insurer approved by the FHLMC or FNMA, or

             c) the extension of credit has been paid down subsequent to origination to a loan-to-value ratio of less than 80% calculated using value at origination.

Also includes the combined carrying value of all mortgage and consumer loans that are secured by liens on the same 1-4 family residential property, with no intervening liens (i.e., your institution holds extensions of credit secured by first lien and second lien positions), if all of the following criteria are met:

          1. Each loan is prudently underwritten;

          2. Each loan is performing and not more than 90 days past due; and

          3. One of the following is true:

             a) the combined loan-to-value ratio (CLTV) does not exceed 80% at origination,

             b) the combined extension of credit is insured to at least an 80% loan-to-value ration by private mortgage insurance provided by an insurer approved by the FHLMC or FNMA, or

             c) the combined extension of cedit has been paid down subsequent to origination to a loan-to-value ratio of less than 80% calculated using value at origination.

When a lending institution holds the first lien and junior liens on a 1-to-4 family residential property and no other party holds an intervening lien, the loans will be viewed as a single extension of credit secured by a first lien on the underlying property for the purpose of determining the LTV ratio, as well as for risk weighting. The combined loan amount will be assigned to either the 50% or 100% risk category, depending on whether the credit satisfies the criteria for 50% risk weighting. In determining the LTV ratio, all loans secured by the same property must be combined, regardless of whether the loan is classified as a mortgage or consumer loan in Schedule SC. However, loans to businesses, secured by residential property, that are classified as commercial loans in Schedule SC, do not have to be included in the calculation of the CLTV ratio for that property. Such commercial loans should be risk weighted at 100%.

In the event of an intervening lien, (for example an institution holds a first mortgage and third lien in the form of a home equity line, a secured credit card, etc.), the loans are not combined because another entity holds the second lien (i.e., there is an intervening lien). In this case carrying value of the loan secured by the first lien is risk-weighted at 50% if the LTV is 80% or less and it otherwise meets the 50% risk-weighted criteria. The carrying value of the loan secured by the third lien is risk weighted at 100%, regardless of the CLTV.

In addition, the following types of loans are included in the definition of single-family mortgage loans and must meet the criteria above to be risk-weighted at 50%.

          1. Loans on interests in cooperative buildings;

          2. Loans to individuals to fund the construction of their own home which meet the definition of a qualifying residential construction loan in OTS Regulation 567.1. Include any accrued interest receivable in the loan balance; and
   
   3. Mortgage loans on mixed use properties that are primarily single-family residential properties.

Excludes:

          1. The combined carrying value of mortgage and consumer loans secured by first or second liens on the same property when the CLTV ratio exceeds 80%; report the combined carrying value of these loans on item no. 5339.

          2. The combined carrying value of mortgage and consumer loans secured by first and second liens on the same property if any of the extensions of credit are nonperforming (nonaccrual) or more than 90 days past due; report on item no. 5339;

          3. A loan to a consumer collateralized by a junion lien when another lender holds an intervening lien; (e.g., your institution holds the second lien and another lender holds the first lien, or your institution holds the first lien and the third lien, but does not hold the second lien (the intervening lien); report the junior lien on item no. 5339;

          4. Foreclosed real estate, report on item no. 5339;

          5. Loans to individuals to construct their own home that are not qualifying residential construction loans as defined in OTS Regulation 567.1; report on item no. 5339;

          6. The portion of loans guaranteed by FHA that may be risk weighted at 20%; report on item no. 5326;

          7. Loans to commercial entities collateralized by mortgages of third-party borrowers (e.g., warehouse loans); or small business loans collateralized by a lien on a residential property reported on item no. 5339.

NOTE:

Beginning 9/30/1999, for the SVGL report, the entire definition was revised.