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Bank Loans and Related Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Composition of Bank Loans and Delinquency Analysis by Loan Segment
The composition of bank loans and delinquency analysis by portfolio segment and class of financing receivable is as follows:
December 31, 2020Current30-59 days
past due
60-89 days
past due
>90 days past
due and other
nonaccrual loans
(3)
Total past due and other
nonaccrual loans
Total
loans
Allowance for credit
losses
Total
bank
loans
net
Residential real estate:
First Mortgages (1,2)
$14,804 $27 $$72 $100 $14,904 $22 $14,882 
HELOCs (1,2)
823 17 19 842 837 
Total residential real estate15,627 28 89 119 15,746 27 15,719 
Pledged asset lines7,901 10 — 15 7,916 — 7,916 
Other181 — — — — 181 178 
Total bank loans$23,709 $38 $$89 $134 $23,843 $30 $23,813 
       
December 31, 2019       
Residential real estate:
First Mortgages (1,2)
$11,665 $24 $$11 $39 $11,704 $11 $11,693 
HELOCs (1,2)
1,105 12 1,117 1,113 
Total residential real estate12,770 26 20 51 12,821 15 12,806 
Pledged asset lines5,202 — — 5,206 — 5,206 
Other201 — — 203 200 
Total bank loans$18,173 $30 $$22 $57 $18,230 $18 $18,212 
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $72 million and $74 million at December 31, 2020 and 2019, respectively.
(2) At December 31, 2020 and 2019, 45% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole.
(3) There were no loans accruing interest that were contractually 90 days or more past due at December 31, 2020 or 2019.
Changes in Allowance for Credit Losses
Changes in the allowance for credit losses on bank loans were as follows:
December 31, 2020December 31, 2019December 31, 2018
First MortgagesHELOCsTotal residential real estateOther
Total (1)
First MortgagesHELOCsTotal residential real estateOther
Total (1)
First MortgagesHELOCsTotal residential real estateOther
Total (1)
Balance at beginning of year$11 $$15 $$18 $14 $$19 $$21 $16 $$24 $26 
Adoption of ASU 2016-13— — — — — — — — — — — — 
Charge-offs— — — — — — — — — — — — — (1)(1)
Recoveries— — — — 
Provision for credit losses10 — 10 (4)(2)(6)(5)(3)(4)(7)(6)
Balance at end of year$22 $$27 $$30 $11 $$15 $$18 $14 $$19 $$21 
Note: Substantially all of the bank loans were collectively evaluated for impairment at December 31, 2019 and 2018.
(1) All PALs were fully collateralized by securities with fair values in excess of borrowings as of each period presented.
Bank Loan-related Nonperforming Assets and Troubled Debt Restructurings
A summary of bank loan-related nonperforming assets and troubled debt restructurings is as follows:
December 31,20202019
Nonaccrual loans (1)
$89 $22 
Other real estate owned (2)
Total nonperforming assets90 23 
Troubled debt restructurings
Total nonperforming assets and troubled debt restructurings$91 $25 
(1) Nonaccrual loans include nonaccrual troubled debt restructurings.
(2) Included in other assets on the consolidated balance sheets.
Credit Quality Indicators of Bank Loan Portfolio
The credit quality indicators of the Company’s bank loan portfolio are detailed below:
First Mortgages Amortized Cost Basis by Origination Year
December 31, 202020202019201820172016pre-2016Total First MortgagesRevolving HELOCs amortized cost basisHELOCs converted to term loansTotal HELOCs
Origination FICO
<620$$— $— $— $— $$$— $— $— 
620 – 67929 13 17 14 84 
680 – 739794 355 105 181 166 253 1,854 82 80 162 
≥7407,150 2,452 449 858 1,029 1,025 12,963 380 296 676 
Total$7,974 $2,820 $557 $1,047 $1,212 $1,294 $14,904 $463 $379 $842 
Origination LTV
≤70%$6,653 $2,211 $396 $793 $1,024 $911 $11,988 $351 $269 $620 
>70% – ≤90%1,321 609 161 254 188 380 2,913 112 107 219 
>90% – ≤100%— — — — — — 
Total$7,974 $2,820 $557 $1,047 $1,212 $1,294 $14,904 $463 $379 $842 
Weighted Average
Updated FICO
<620$$$$$$17 $31 $$$12 
620 – 67967 34 16 21 20 40 198 12 20 32 
680 – 739784 252 66 121 110 171 1,504 58 55 113 
≥7407,118 2,532 474 901 1,080 1,066 13,171 390 295 685 
Total$7,974 $2,820 $557 $1,047 $1,212 $1,294 $14,904 $463 $379 $842 
Estimated Current LTV (1)
≤70%$6,999 $2,582 $533 $1,034 $1,207 $1,283 $13,638 $452 $368 $820 
>70% – ≤90%975 238 24 13 11 1,266 11 20 
>90% – ≤100%— — — — — — — — 
>100%— — — — — — — — 
Total$7,974 $2,820 $557 $1,047 $1,212 $1,294 $14,904 $463 $379 $842 
Percent of Loans on
Nonaccrual Status
0.09 %0.38 %1.02 %0.87 %0.24 %2.82 %0.48 %1.37 %2.80 %2.02 %
(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.

December 31, 2020BalanceWeighted Average Updated FICOPercent of Loans on Nonaccrual Status
Pledged Asset Lines
Weighted-Average LTV (1)
=70%$7,916 770 — 
(1) Represents the LTV for the full line of credit (drawn and undrawn).
First Mortgages Amortized Cost Basis by Origination Year
December 31, 20192019201820172016pre-2016Total First MortgagesRevolving HELOCs amortized cost basisHELOCs converted to term loansTotal HELOCs
Origination FICO
<620$— $— $— $— $$$— $— $— 
620 – 67912 14 20 25 77 
680 – 739478 220 304 290 421 1,713 114 105 219 
≥7403,512 1,058 1,593 1,839 1,909 9,911 496 397 893 
Total$4,002 $1,284 $1,911 $2,149 $2,358 $11,704 $611 $506 $1,117 
Origination LTV
≤70%$3,104 $906 $1,427 $1,812 $1,679 $8,928 $444 $354 $798 
>70% – ≤90%898 378 484 337 676 2,773 167 147 314 
>90% – ≤100%— — — — — 
Total$4,002 $1,284 $1,911 $2,149 $2,358 $11,704 $611 $506 $1,117 
Weighted Average
Updated FICO
<620$$$$$25 $42 $$15 $21 
620 – 67945 36 32 26 68 207 18 22 40 
680 – 739474 153 213 199 307 1,346 92 80 172 
≥7403,478 1,091 1,661 1,921 1,958 10,109 495 389 884 
Total$4,002 $1,284 $1,911 $2,149 $2,358 $11,704 $611 $506 $1,117 
Estimated Current LTV (1)
≤70%$3,125 $1,018 $1,790 $2,119 $2,330 $10,382 $578 $478 $1,056 
>70% – ≤90%877 265 121 30 27 1,320 33 23 56 
>90% – ≤100%— — — — 
>100%— — — — — — — 
Total$4,002 $1,284 $1,911 $2,149 $2,358 $11,704 $611 $506 $1,117 
Percent of Loans on
Nonaccrual Status
0.04 %0.04 %0.04 %0.08 %0.25 %0.09 %0.19 %1.57 %0.83 %
(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.

December 31, 2019BalanceWeighted Average Updated FICOPercent of Loans on Nonaccrual Status
Pledged Asset Lines
Weighted-Average LTV (1)
=70%$5,206 766 — 
(1) Represents the LTV for the full line of credit (drawn and undrawn).
Convert to Amortizing Loans
The following table presents HELOCs converted to amortizing loans during each period presented:
December 31,20202019
HELOCs converted to amortizing loans$26 $44 

The following table presents when current outstanding HELOCs will convert to amortizing loans:
December 31, 2020Balance
Converted to an amortizing loan by period end$379 
Within 1 year31 
> 1 year – 3 years88 
> 3 years – 5 years95 
> 5 years249 
Total$842