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Lending Activities (Tables)
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Composition of Mortgages and Other Loans Receivable
(in millions)June 30, 2022December 31, 2021
Commercial mortgages(a)
$37,205 $35,665 
Residential mortgages5,720 5,492 
Life insurance policy loans1,787 1,843 
Commercial loans, other loans and notes receivable(b)
5,205 3,677 
Total mortgage and other loans receivable49,917 46,677 
Allowance for credit losses(c)
(603)(629)
Mortgage and other loans receivable, net$49,314 $46,048 
(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 20 percent and 12 percent, respectively, at June 30, 2022 and 21 percent and 10 percent, respectively, at December 31, 2021).
(b)Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by apartments. As of June 30, 2022 and December 31, 2021, the net carrying value of these loans were $186 million and $15 million, respectively.
(c)Does not include allowance for credit losses of $89 million and $71 million, respectively, at June 30, 2022 and December 31, 2021, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.
Credit Quality
The following table presents debt service coverage ratios(a) for commercial mortgages by year of vintage:
June 30, 202220222021202020192018PriorTotal
(in millions)
>1.2X$3,687 $2,347 $1,671 $5,032 $4,002 $13,827 $30,566 
1.00 - 1.20X174 654 992 553 1,137 1,214 4,724 
<1.00X— — 23 71 613 1,208 1,915 
Total commercial mortgages$3,861 $3,001 $2,686 $5,656 $5,752 $16,249 $37,205 
December 31, 202120212020201920182017PriorTotal
(in millions)
>1.2X$2,245 $1,662 $5,126 $3,926 $3,557 $10,796 $27,312 
1.00 - 1.20X574 1,019 700 1,138 136 1,929 5,496 
<1.00X1 27 71 925 41 1,792 2,857 
Total commercial mortgages$2,820 $2,708 $5,897 $5,989 $3,734 $14,517 $35,665 
The following table presents loan-to-value ratios(b) for commercial mortgages by year of vintage:
June 30, 202220222021202020192018PriorTotal
(in millions)
Less than 65%$3,330 $2,408 $2,227 $3,960 $4,560 $11,210 $27,695 
65% to 75%531 447 398 1,659 1,162 3,455 7,652 
76% to 80%— 114 — — 30 468 612 
Greater than 80%— 32 61 37 — 1,116 1,246 
Total commercial mortgages$3,861 $3,001 $2,686 $5,656 $5,752 $16,249 $37,205 
December 31, 202120212020201920182017PriorTotal
(in millions)
Less than 65%$2,286 $2,272 $4,149 $4,815 $2,892 $9,902 $26,316 
65% to 75%372 410 1,748 1,174 406 3,490 7,600 
76% to 80%— — — — 188 274 462 
Greater than 80%162 26 — — 248 851 1,287 
Total commercial mortgages$2,820 $2,708 $5,897 $5,989 $3,734 $14,517 $35,665 
(a)The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9X at both June 30, 2022 and December 31, 2021. The debt service coverage ratios have been updated within the last three months. The debt service coverage ratios are updated when additional relevant information becomes available.
(b)The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent at June 30, 2022 and was 57 percent at December 31, 2021. The loan-to-value ratios have been updated within the last three months.
The following table presents the credit quality performance indicators for commercial mortgages:
Number
of
Loans		ClassPercent
of
Total
(dollars in millions)ApartmentsOfficesRetailIndustrialHotelOthersTotal
June 30, 2022
Credit Quality Performance Indicator:
In good standing631$13,706 $10,513 $4,290 $5,505 $2,055 $393 $36,462 98 %
Restructured(a)
10— 353 140 — 137 — 630 2 
90 days or less delinquent—— — — — — — — — 
>90 days delinquent or in process of foreclosure3— 65 48 — — — 113 — 
Total(b)
644$13,706 $10,931 $4,478 $5,505 $2,192 $393 $37,205 100 %
Allowance for credit losses$88 $230 98 67 33 9 $525 1 %
December 31, 2021
Credit Quality Performance Indicator:
In good standing636$14,267 $9,695 $4,778 $3,858 $1,985 $432 $35,015 98 %
Restructured(a)
8— 354 25 — 136 — 515 2 
90 days or less delinquent—— — — — — — — — 
>90 days delinquent or in process of foreclosure5— 81 54 — — — 135 — 
Total(b)
649$14,267 $10,130 $4,857 $3,858 $2,121 $432 $35,665 100 %
Allowance for credit losses$109 $247 $103 $47 $31 $8 $545 2 %
(a)Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 6 to the Consolidated Financial Statements in the 2021 Annual Report.
(b)Does not reflect allowance for credit losses.
The following table presents credit quality performance indicators for residential mortgages by year of vintage:
June 30, 202220222021202020192018PriorTotal
(in millions)
FICO*:
780 and greater$199 $2,266 $674 $243 $83 $596 $4,061 
720 - 779200 752 174 78 33 177 1,414 
660 - 7198 82 29 16 10 66 211 
600 - 659— 4 2 2 2 16 26 
Less than 600— — — 1 — 7 8 
Total residential mortgages$407 $3,104 $879 $340 $128 $862 $5,720 
December 31, 202120212020201920182017PriorTotal
(in millions)
FICO*:
780 and greater$1,601 $691 $297 $107 $192 $501 $3,389 
720 - 7791,306 230 86 44 58 154 1,878 
660 - 71948 42 22 12 20 49 193 
600 - 6591 1 2 3 2 12 21 
Less than 600— — 1 1 2 7 11 
Total residential mortgages$2,956 $964 $408 $167 $274 $723 $5,492 
*Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months.
Allowance for Credit Loss
The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable(a):
Three Months Ended June 30,20222021
(in millions)Commercial
Mortgages		Other
Loans		TotalCommercial
Mortgages		Other
Loans		Total
Allowance, beginning of period$533 $84 $617 $662 $125 $787 
Loans charged off— — — — — — 
Net charge-offs— — — — — — 
Addition to (release of) allowance for loan losses(8)(6)(14)(75)(11)(86)
Allowance, end of period$525 $78 $603 $587 $114 $701 
Six Months Ended June 30,20222021
(in millions)Commercial
Mortgages		Other
Loans		TotalCommercial
Mortgages		Other
Loans		Total
Allowance, beginning of year$545 $84 $629 $685 $129 $814 
Loans charged off(4)— (4)— — — 
Net charge-offs(4)— (4)— — — 
Addition to (release of) allowance for loan losses(16)(6)(22)(98)(15)(113)
Allowance, end of period$525 $78 $603 $587 $114 $701 
(a)Does not include allowance for credit losses of $89 million and $81 million, respectively, at June 30, 2022 and 2021 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.