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PNC » Topics » N OTE 11 S ECURITIZATIONS AND R ETAINED I NTERESTS

This excerpt taken from the PNC 10-K filed Feb 4, 2008.

NOTE 11 SECURITIZATIONS AND RETAINED INTERESTS

During 2006, 2005 and 2004, we sold commercial mortgage loans totaling $307 million, $284 million and $460 million, respectively, in securitization transactions through programs with the Government National Mortgage Association (“GNMA”). The transactions and resulting receipt and subsequent sale of securities qualify as sales under the appropriate accounting criteria and resulted in pretax gains of $8 million in 2006, $7 million in 2005 and $8 million in 2004. In addition to the cash proceeds from the sales transactions above, net cash flows between the securitization vehicles and

PNC, including servicing fees, in 2006, 2005 and 2004 related to those transactions were not significant.

Additionally, we sold commercial mortgage and commercial loans of $2.9 billion in 2006, $3.1 billion in 2005 and $1.6 billion in 2004 for cash in other loan sales transactions. These transactions resulted in pretax gains of $55 million in 2006, $54 million in 2005 and $42 million in 2004. See Note 9 Goodwill and Other Intangible Assets for additional information regarding servicing assets.

For the transactions above, we continue to perform servicing and recognized servicing assets of $26 million in 2006, $23 million in 2005 and $14 million in 2004. We also purchased servicing rights for commercial mortgage loans from third parties of approximately $150 million in 2006, $112 million in 2005 and $47 million in 2004.

During the fourth quarter of 2006, we sold residential mortgage loans totaling $358 million in securitization transactions through third party programs. Additionally, we sold residential mortgage loans of $26 million in the fourth quarter of 2006 for cash in other loan sales transactions. For these transactions, we serve as the servicer of record and recognized servicing assets of $4 million in 2006. In accordance with SFAS 156, these servicing assets were initially measured at fair value and we have elected the fair value method to value these residential mortgage servicing assets. The changes in fair value during 2006 and the servicing fees received in 2006 were not significant.

Changes in the mortgage and other loan servicing assets were as follows:

This excerpt taken from the PNC 10-K filed Mar 1, 2007.

NOTE 11 SECURITIZATIONS AND RETAINED INTERESTS

During 2006, 2005 and 2004, we sold commercial mortgage loans totaling $307 million, $284 million and $460 million, respectively, in securitization transactions through programs with the Government National Mortgage Association (“GNMA”). The transactions and resulting receipt and subsequent sale of securities qualify as sales under the appropriate accounting criteria and resulted in pretax gains of $8 million in 2006, $7 million in 2005 and $8 million in 2004. In addition to the cash proceeds from the sales transactions above, net cash flows between the securitization vehicles and

PNC, including servicing fees, in 2006, 2005 and 2004 related to those transactions were not significant.

Additionally, we sold commercial mortgage and commercial loans of $2.9 billion in 2006, $3.1 billion in 2005 and $1.6 billion in 2004 for cash in other loan sales transactions. These transactions resulted in pretax gains of $55 million in 2006, $54 million in 2005 and $42 million in 2004. See Note 9 Goodwill and Other Intangible Assets for additional information regarding servicing assets.

For the transactions above, we continue to perform servicing and recognized servicing assets of $26 million in 2006, $23 million in 2005 and $14 million in 2004. We also purchased servicing rights for commercial mortgage loans from third parties of approximately $150 million in 2006, $112 million in 2005 and $47 million in 2004.

During the fourth quarter of 2006, we sold residential mortgage loans totaling $358 million in securitization transactions through third party programs. Additionally, we sold residential mortgage loans of $26 million in the fourth quarter of 2006 for cash in other loan sales transactions. For these transactions, we serve as the servicer of record and recognized servicing assets of $4 million in 2006. In accordance with SFAS 156, these servicing assets were initially measured at fair value and we have elected the fair value method to value these residential mortgage servicing assets. The changes in fair value during 2006 and the servicing fees received in 2006 were not significant.

Changes in the mortgage and other loan servicing assets were as follows:

EXCERPTS ON THIS PAGE:

10-K
Feb 4, 2008
10-K
Mar 1, 2007

RELATED TOPICS for PNC:

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