Loan Sale and Servicing Activities and Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2014

Loan Sale and Servicing Activities and Variable Interest Entities [Abstract]

Certain Financial Information and Cash Flows Associated with Loan Sale and Servicing Activities

Table 52: Certain Financial Information and Cash Flows Associated with Loan Sale and Servicing Activities
	Residential			Commercial		Home Equity
In millions	Mortgages			Mortgages (a)		Loans/Lines (b)
FINANCIAL INFORMATION - September 30, 2014
Servicing portfolio (c)		$	110,749	$	179,148	$	3,936
Carrying value of servicing assets (d)			978		532
Servicing advances (e)			486		318		4
Repurchase and recourse obligations (f)			108		36		24
Carrying value of mortgage-backed securities held (g)			3,514		1,189
FINANCIAL INFORMATION - December 31, 2013
Servicing portfolio (c)		$	113,994	$	176,510	$	4,321	(h)
Carrying value of servicing assets (d)			1,087		549
Servicing advances (e)			571		412		11
Repurchase and recourse obligations (f)			131		33		22
Carrying value of mortgage-backed securities held (g)			4,144		1,475

		Residential			Commercial		Home Equity
In millions		Mortgages			Mortgages (a)		Loans/Lines (b)
CASH FLOWS - Three months ended September 30, 2014
Sales of loans (i)			$	2,153	$	1,091
Repurchases of previously transferred loans (j)				188			$	4
Servicing fees (k)				86		34		4
Servicing advances recovered/(funded), net				15		38
Cash flows on mortgage-backed securities held (g)				238		51
CASH FLOWS - Three months ended September 30, 2013
Sales of loans (i)			$	4,148	$	712
Repurchases of previously transferred loans (j)				278			$	1
Servicing fees (k)				91		44		5
Servicing advances recovered/(funded), net						78		(5)
Cash flows on mortgage-backed securities held (g)				436		140
CASH FLOWS - Nine months ended September 30, 2014
Sales of loans (i)			$	6,437	$	2,026
Repurchases of previously transferred loans (j)				556			$	13
Servicing fees (k)				260		101		14
Servicing advances recovered/(funded), net				84		93		6
Cash flows on mortgage-backed securities held (g)				724		242
CASH FLOWS - Nine months ended September 30, 2013
Sales of loans (i)			$	12,142	$	2,127
Repurchases of previously transferred loans (j)				928			$	5
Servicing fees (k)				270		133		16
Servicing advances recovered/(funded), net				24		81		(6)
Cash flows on mortgage-backed securities held (g)				1,192		333
(a)	Represents financial and cash flow information associated with both commercial mortgage loan transfer and servicing activities.
(b)	These activities were part of an acquired brokered home equity lending business in which PNC is no longer engaged. See Note 17 Commitments and Guarantees for further information.
(c)	For our continuing involvement with residential mortgages, this amount represents the outstanding balance of loans we service, including loans transferred by us and loans originated by others where we have purchased the associated servicing rights. For home equity loan/line of credit transfers, this amount represents the outstanding balance of loans transferred and serviced. For commercial mortgages, this amount represents our overall servicing portfolio in which loans have been transferred by us or third parties to VIEs.
(d)	See Note 8 Fair Value and Note 9 Goodwill and Other Intangible Assets for further information.
(e)	Pursuant to certain contractual servicing agreements, represents outstanding balance of funds advanced (i) to investors for monthly collections of borrower principal and interest, (ii) for borrower draws on unused home equity lines of credit, and (iii) for collateral protection associated with the underlying mortgage collateral.
(f)	Represents liability for our loss exposure associated with loan repurchases for breaches of representations and warranties for our Residential Mortgage Banking and Non-Strategic Assets Portfolio segments, and our commercial mortgage loss share arrangements for our Corporate & Institutional Banking segment. See Note 17 Commitments and Guarantees for further information.
(g)	Represents securities held where PNC transferred to and/or services loans for a securitization SPE and we hold securities issued by that SPE.
(h)	In prior periods, the unpaid principal balance reflected the outstanding balance at the time of charge-off. During the second quarter of 2014, we corrected the outstanding principal balance to reflect the unpaid principal balance as of the reporting date. Prior period amounts were decreased by approximately $581 million.
(i)	There were no gains or losses recognized on the transaction date for sales of residential mortgage loans as these loans are recognized on the balance sheet at fair value. For transfers of commercial mortgage loans not recognized on the balance sheet at fair value, gains/losses recognized on sales of these loans were insignificant for the periods presented.
(j)	Includes government insured or guaranteed loans eligible for repurchase through the exercise of our ROAP option and loans repurchased due to breaches of origination covenants or representations and warranties made to purchasers.
(k)	Includes contractually specified servicing fees, late charges and ancillary fees.

Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans

Table 53: Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-offs Related to Serviced Loans
		Residential		Commercial		Home Equity
In millions		Mortgages		Mortgages		Loans/Lines (a)
Serviced Loan Information - September 30, 2014
Total principal balance	$	80,887	$	60,935	$	3,936
Delinquent loans		2,859		2,525		1,312
Serviced Loan Information - December 31, 2013
Total principal balance	$	85,758	$	62,872	$	4,321	(b)
Delinquent loans		3,562		2,353		1,404	(b)

		Residential		Commercial		Home Equity
In millions		Mortgages		Mortgages		Loans/Lines (a)
Three months ended September 30, 2014
Net charge-offs (c)	$	33	$	439	$	15
Three months ended September 30, 2013
Net charge-offs (c)	$	58	$	431	$	24
Nine months ended September 30, 2014
Net charge-offs (c)	$	108	$	1,139	$	47
Nine months ended September 30, 2013
Net charge-offs (c)	$	173	$	729	$	103
(a) These activities were part of an acquired brokered home equity lending business in which PNC is no longer engaged. See Note 17 Commitments and Guarantees for further information.
(b) In prior periods, the unpaid principal balance reflected the outstanding balance at the time of charge-off. During the second quarter of 2014, we corrected the outstanding principal balance to reflect the unpaid principal balance as of the reporting date. Prior period amounts were decreased by approximately $581 million.
(c) Net charge-offs for Residential mortgages and Home equity loans/lines represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for CMBS securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information.

Consolidated VIEs - Carrying Value

Table 54: Consolidated VIEs – Carrying Value (a) (b)
September 30, 2014			Credit Card and Other			Tax Credit
In millions			Securitization Trusts			Investments			Total
Assets
Cash and due from banks							$	5		$	5
Interest-earning deposits with banks								7			7
Loans				$	1,580						1,580
Allowance for loan and lease losses					(49)						(49)
Equity investments								451			451
Other assets					22			428			450
	Total assets			$	1,553		$	891		$	2,444
Liabilities
Other borrowed funds				$	167		$	195		$	362
Accrued expenses								70			70
Other liabilities								154			154
	Total liabilities			$	167		$	419		$	586
December 31, 2013			Credit Card and Other			Tax Credit
In millions			Securitization Trusts			Investments			Total
Assets
Cash and due from banks							$	5		$	5
Interest-earning deposits with banks								7			7
Loans				$	1,736						1,736
Allowance for loan and lease losses					(58)						(58)
Equity investments								582			582
Other assets					25			566			591
	Total assets			$	1,703		$	1,160		$	2,863
Liabilities
Other borrowed funds				$	184		$	230		$	414
Accrued expenses								83			83
Other liabilities								252			252
	Total liabilities			$	184		$	565		$	749
(a)		Amounts represent carrying value on PNC’s Consolidated Balance Sheet.
(b)		Difference between total assets and total liabilities represents the equity portion of the VIE or intercompany assets and liabilities which are eliminated in consolidation.

Non-Consolidated VIEs

Table 55: Non-Consolidated VIEs
									Carrying			Carrying
		Aggregate			Aggregate		PNC Risk		Value of			Value of
In millions		Assets			Liabilities		of Loss (a)		Assets			Liabilities
September 30, 2014
Commercial Mortgage-Backed Securitizations (b)			$	60,706	$	60,706	$	1,386	$	1,386	(d)	$	1	(f)
Residential Mortgage-Backed Securitizations (b)				42,179		42,179		3,532		3,532	(d)		4	(f)
Tax Credit Investments and Other (c)				7,178		2,643		2,154		2,189	(e)		771	(g)
	Total		$	110,063	$	105,528	$	7,072	$	7,107		$	776
									Carrying			Carrying
		Aggregate			Aggregate		PNC Risk		Value of			Value of
In millions		Assets			Liabilities		of Loss (a)		Assets			Liabilities
December 31, 2013
Commercial Mortgage-Backed Securitizations (b)			$	65,757	$	65,757	$	1,747	$	1,747	(d)
Residential Mortgage-Backed Securitizations (b)				37,962		37,962		4,171		4,171	(d)	$	5	(f)
Tax Credit Investments and Other (c) (h)				7,086		2,622		2,030		2,055	(e)		826	(g)
	Total		$	110,805	$	106,341	$	7,948	$	7,973		$	831
(a)	This represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). Our total exposure related to our involvement in loan sale and servicing activities is disclosed in Table 52. Additionally, we also invest in other mortgage and asset-backed securities issued by third-party VIEs with which we have no continuing involvement. Further information on these securities is included in Note 7 Investment Securities and values disclosed represent our maximum exposure to loss for those securities’ holdings.
(b)	Amounts reflect involvement with securitization SPEs where PNC transferred to and/or services loans for an SPE and we hold securities issued by that SPE. Asset amounts equal outstanding liability amounts of the SPEs due to limited availability of SPE financial information.
(c)	Aggregate assets and aggregate liabilities are based on limited availability of financial information associated with certain acquired partnerships and certain LLCs engaged in solar power generation to which PNC provides lease financing. The aggregate assets and aggregate liabilities of LLCs engaged in solar power generation may not be reflective of the size of these VIEs due to differences in classification of leases by these entities.
(d)	Included in Trading securities, Investment securities, Other intangible assets and Other assets on our Consolidated Balance Sheet.
(e)	Included in Loans, Equity investments and Other assets on our Consolidated Balance Sheet.
(f)	Included in Other liabilities on our Consolidated Balance Sheet.
(g)	Included in Deposits and Other liabilities on our Consolidated Balance Sheet.
(h)	PNC Risk of Loss and Carrying Value of Assets have been updated to reflect the first quarter 2014 adoption of ASU 2014-01 related to investments in low income housing tax credits.